scholarly journals New Opportunities for the Development of Corporate Governance in Power Generating Companies for the Benefit of Investors

2021 ◽  
pp. 59-69
Author(s):  
G. Sheveleva
Keyword(s):  
Corporate Governance ◽  
Electric Power ◽  
Ownership Structure ◽  
Electric Power Industry ◽  
Power Industry ◽  
Soft Law ◽  
Corporate Code ◽  
Corporate Governance Code ◽  
New Form ◽  
Performance Results

The paper presents an analysis of the central metrics of corporate governance in wholesale and territorial generating companies of the electric power industry that concern ownership structure and compliance of the companies with the principles of the Corporate Governance Code based on their performance results of 2018 - 2019. An increase in ownership concentration and the presence of the state in the competitive segment of the electric power industry is noted. This study has identified the least met criteria for evaluating compliance with the principles of the Corporate Governance Code. The possibilities of developing corporate governance for the benefit of investors are elucidated. These are tightening control over the observance of international "soft law" ("comply or explain"); expanding the criteria for evaluating compliance with the principles of the Corporate Governance Code that are recommended by the Bank of Russia; updating the Corporate Governance Code based on ESG (Environmental, Social, and Governance) transformation. A new form of oversight over compliance with the Corporate Code principles and criteria for evaluating the adherence to the ESG principles are proposed.

scholarly journals Topical Issues in Corporate Governance Development in the Russia's Electric Power Industry

2019 ◽  
Vol 139 ◽  
pp. 01022
Author(s):  
G.I. Sheveleva
Keyword(s):  
Corporate Governance ◽  
Performance Evaluation ◽  
Electric Power ◽  
Boards Of Directors ◽  
Electric Power Industry ◽  
Social Engineering ◽  
Power Industry ◽  
Independent Directors ◽  
Corporate Governance Code ◽  
And Performance

Corporate governance in the Russian power companies is developing slowly, and its importance for increasing their investment appeal remains underestimated. In order to identify the main problems hindering such development, the assessment of corporate practices of these companies was carried out. It was performed mainly as per the criteria of the guidelines of Russia’s Bank on compliance with the principles of the Corporate Governance Code, as well as those not included in its guidelines. The results obtained were compared to those of the TopCompetence Corporate Governance Center, the Platforma Center for Social Engineering, the Center for Strategic Studies at the MGIMO University, the Corporate Governance Index of the Independent Directors Association and the HSE University. We benchmarked PJSC LUKOIL that ranks among the world's top 10 companies in terms of the total shareholder return as estimated by the Boston Consulting Group. On the basis of a generalization of all the obtained findings we delineated the topical issues of the development of corporate governance. These issues were mainly concerned with the Boards of Directors and were grouped according to the stages of their nomination, election, current operations and performance evaluation. The emphasis was put on the issues related to the adoption of new managerial technologies.

scholarly journals Transformation of corporate governance in the Russia’s electric power industry

2020 ◽  
Vol 216 ◽  
pp. 01012
Author(s):  
Galina I. Sheveleva
Keyword(s):  
Corporate Governance ◽  
Electric Power ◽  
Electric Power Industry ◽  
Social Engineering ◽  
Power Industry ◽  
State University ◽  
Formal Approach ◽  
Governance Practices ◽  
International Corporate Governance ◽  
Key Aspects

To make Russia' electric power industry more appealing for investors, in the course of its reformation its generating assets were privatized with international corporate governance principles adopted. One of the key reasons that hinder the solution of the above problem is the transformation of corporate governance. The results of the assessment of power generating companies' compliance with the Corporate Governance Code in 2017–2018 are presented. The assessment was conducted using the Bank of Russia methodology. An additional analysis of information on general corporate governance practices as retrieved from the official websites of these companies was performed. We took into account the findings of the research published in this area as carried out at St. Petersburg State University, the New Economic School, the Russian Institute of Directors, the Platforma Center for Social Engineering, the MGIMO University, the Independent Directors Association and the HSE University. The key aspects of corporate governance transformation in the Russia's electric power industry were identified by summarizing the data thus obtained. They were primarily limited to claiming a formal approach adopted by majority owners so as to comply with international corporate governance standards in the process of permanent redistribution of ownership and increasing its concentration.

Improving the integrated reporting of electric-power industry companies

2020 ◽  
Vol 23 (8) ◽  
pp. 922-939
Author(s):  
N.V. Malinovskaya ◽  
M.D. Malinovskii
Keyword(s):  
Comparative Analysis ◽  
Electric Power ◽  
Electric Power Industry ◽  
Power Industry ◽  
Integrated Reporting ◽  
Strategic Objectives ◽  
Methods Of Analysis ◽  
Analysis And Synthesis ◽  
Guiding Principles

Subject. This article deals with the issues relating to improving integrated reporting in terms of dovetailing strategic objectives with capital changes. Objectives. The article aims to develop a system of indicators for disclosure of capital types in integrated reporting of electricity generating companies, as well as recommendations aimed at implementing the fundamental concepts and guiding principles of integrated reporting. Methods. For the study, we used the methods of analysis and synthesis, comparison, generalization, and abstraction. As a case study, we conduct a comparative analysis of the disclosure of six types of capital by the largest electricity generating companies, namely PAO Inter RAO, AO Rosenergoatom and PAO RusHydro. Results. The article formulates proposals for disclosure of capital information to address such a lack of accountability as a contradiction to the principle of coherence. It proposes a system of indicators (core and additional) for disclosure of six types of capital by electricity generating companies. Conclusions. A significant reporting problem is the lack of correlation between key strategic objectives and capital changes. The formulated recommendations for disclosure of capital information can help solve this problem, and increase the attractiveness of the integrated report for capital providers.

EVALUATION OF INDICATORS FOR DETERMINING THE EFFICIENCY AND THE DEGREE OF READY OF THE COUNTRIES TO THE DIGITAL TRANSITION IN ELECTRICITY

2020 ◽  
Vol 1 (11) ◽  
pp. 12-22
Author(s):  
E. V. KARANINA ◽  
◽  
M. A. BORTNIKOV ◽  
Keyword(s):  
Electric Power ◽  
Structural Transformation ◽  
Electric Power Industry ◽  
Energy Transition ◽  
Basic Research ◽  
Power Industry ◽  
Energy Development ◽  
Global Level ◽  
Digital Transition ◽  
State Programs

The digital economy implies a structural transformation in many industries, including the energy sector, without taking into account the state specifics of the industry, for which full-fledged digitalization can be harmful. The aim of the study is to develop a methodology and determine the readiness of countries for digitalization in the electric power industry, taking into account all the main industry groups of factors. The paper analyzes the concept of “energy transition” and defines the indices that are applied to assess this transition at the global level. A system of indices is proposed to determine the degree of readiness for a digital transition in the electric power industry as one of the components of the “energy transition” and the most possible scenario for the transformation of this industry in Russia. The analysis of key areas of digital energy development is presented. The degree of readiness of the leading 100 countries in terms of GDP for digitalization in the electric power industry according to the proposed methodology has been calculated, and the further direction of basic research in this direction has been indicated. Conclusions have been drawn on the appropriateness of developing state programs and the main directions to which DM decision should be drawn with due desire to digitize the industry have been highlighted.

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