Procurement Activities
GRI 2-25, 2-26
Regulatory framework
Procurement activities at the Company are governed by the following documents:
- Unified Procurement Standard of PJSC Rosseti (Regulations on Procurement)
- Liaison Protocol of PJSC Rosseti South’s business units during scheduled procurement of goods, works and services of the Company
- Regulations on the Work of the Central Tender Commission of PJSC Rosseti South
- Regulations on the Work of the Standing Procurement Commission of PJSC Rosseti South
Tender | A tender is the primary procurement method for any product. The winning bidder will be selected based on a combination of criteria (at least two) specified in the procurement documentation |
Auction | Auction can only have one stage, with or without prequalification (unless otherwise provided by the legislation, including special tenders). The auction does not provide for post-qualification or the right to submit alternative bids. An auction is held for the procurement of products for which there is a competitive market of manufacturers and for which the initiator of the procurement formulated detailed requirements in the form of technical specifications. There is only one |
Request for proposals | A request for proposals is conducted for the procurement of any product, subject to the following conditions:
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Request for quotation | A request for quotation is held for the procurement of products for which there is a competitive market of manufacturers and for which the initiator of the procurement formulated detailed requirements in the form of technical specifications, subject to the following conditions:
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Competitive procedure | Competitive procedure with conclusion of agreements with several winners is applied in cases when at the time of procurement the Customer cannot determine the specific volumes and (or) terms of product delivery (performance of works/services). Based on the results of competitive procurement among the winners of such procedures, requests for quotations are made in order to meet the demand for products arising during the term of the agreements. Competitive procedure has no restrictions on the amount of the initial (maximum) price of the contract |
Request for prices based on the results of competitive procedure | Request for prices based on the results of competitive procedure is made only among the winners of competitive procedure without restrictions on the amount of the initial (maximum) price of the contract (lot) |
Prequalification | Prequalification, according to the results of which agreements with several winners are concluded, is applied in cases when at the time of procurement the Customer can not determine the specific volumes and (or) terms of delivery of products (performance of work / rendering of services). Based on the results of the prequalification, requests for quotations are sent to the winners of such procedures in order to meet the demand for products arising during the term of the agreements. Prequalification has no restrictions on the amount of the initial (maximum) price of the contract |
Request for quotations based on the results of prequalification | Request for quotations based on the results of prequalification applies only to the winners of the prequalification without restrictions on the amount of the initial (maximum) price of the contract |
Procurement through participation in procedures organised by product sellers. | Based on the decision of the Customer’s centralised procurement agency, purchases are made through the Customer’s participation in auctions, tenders or other procedures organised by product sellers (including on electronic trading platforms) if there is a need for products that can only be purchased through participation in such procedures |
E-purchases | Non-competitive electronic procurement method, used for the procurement of any product subject to the following conditions:
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Price comparison | Price comparison is used when purchasing simple products if the initial (maximum) contract price does not exceed RUB 500,000 (Five hundred thousand) including VAT if the Customer’s revenue for the reporting financial year exceeds RUB 5 (Five) billion, or does not exceed RUB 100,000 (One hundred thousand) including VAT if the Customer’s revenue for the reporting financial year is less than RUB 5 (Five) billion |
Procurement from a single supplier (responsible party, contractor) | The decision to select a supplier is made by the Customer’s centralised procurement agency or other authorising body within its remit in accordance with the Unified Procurement Standard, including on the basis of the Customer’s market analysis findings. They are categorised into:
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Results of procurement activities in 2024
The Company focuses its efforts on improving the information transparency and access of participants to procurements, including mainly electronic procurement procedures. A share of competitive procurement via the digital trading platforms amounted to 99.88%. There are no suppliers or contractors registered outside the Russian Federation.
2023 | 2024 | Δ 2024/2023 | |
|---|---|---|---|
Share of open competitive procurement pro-cedures, as well as e-commerce procedures (using electronic trading platforms) in the total volume of procurement | 67.44 | 97.86 | 1.45 |
Savings achieved | 3.6 | 2.14 | 0.59 |
Share of purchases from small and medium-sized enterprises, as well as purchases in which small and medium-sized enterprises are engaged as subcontractors | 72.38 | 79.37 | 1.09 |
Share of SME procurements
In 2024, procurements were made and contracts were concluded with suppliers classified as SMEs, worth RUB 8,592.9 million, including VAT, which is 79.37% of the total volume of procurement procedures, including special procurements (where only SMEs could participate in the procurement) worth RUB 5,258.1 million, including VAT, which is 48.57% of the total volume of procurement procedures.
In accordance with the requirements of the Resolution of the Government of the Russian Federation, quotas for purchases by specific customers from SMEs were approved at 20% (25% for special purchases). The Company regularly exceeds the plan of purchases from SMEs.
Improvement of procurement activities
Procurement involves buying goods, services, and work from suppliers who offer the best value for money in an open and competitive way.
In order to improve the efficiency of procurement, the Company launched the Programme to improve operational efficiency and reduce costs at PJSC Rosseti South for
In pursuance of the government policy on small and medium-sized business development, the Company approved the programme of the partnership between PJSC Rosseti South and SMEs. This Programme sets forth the measures aimed at searching and supporting reliable, qualified and responsible suppliers (contractors, executors) from among SMEs. The partnership programme outlines the requirements to small and medium-sized enterprises, rules and conditions of joining the programme.
By the end of 2024, 39 small and medium-sized enterprises joined the partnership programme.
Additional supplier interaction tools include the portal of the Unified Information System for Procurement and the Suppliers section of the corporate website of PJSC Rosseti South rosseti-yug.ru/en/. The Company publishes an up-to-date procurement plan (planned to be announced, ongoing and completed procurements) on these Internet sites with an option of automatic transfer to www.zakupki.gov.ru for prompt access to up-to-date information.