The Department for Internal Audit of IDGC of North-West recommended paying more attention to existing positive aspects of branches’ activities and expanding the experience at other Company’s branches.

The meeting of the Audit Committee under the Board of Directors of IDGC of North-West has been carried out in Moscow as a joint meeting. The Chairman Seppo Remes has put forward the initiative of another joint meeting in the current year.

Members of the Committee discussed the state of the Company’s internal control and audit, the plan for operation of the department in 2010, and the Regulations on the Department for Internal Audit of IDGC of North-West.

The report on operation of the Company’s departments on internal control and audit over the III quarter 2009 has been presented by Gennady Grishin, the Head of the Department for Internal Audit of IDGC of North-West. Under consideration of the report, special attention has been put to results of examinations of investment and repair activity of the Komienergo branch, their analysis, implementation of requirements of local acts by the Kolenergo branch, implementation of measures aimed at revelation of previously eliminated failures at the Karelenergo, Kolenergo, and Vologdaenergo branches.

At the same time, the Department for Internal Audit has been recommended to put attention to existing positive aspects of branches’ activities and expand the experience at other Company’s branches.

Moreover, representatives of Standard & Poor’s corporate governance rating service have been invited to the Committee’s meeting. They have commented on examination of the Russian energy enterprises’ openness which had revealed a high transparency level of IDGC of North-West.

The Company has taken the 6th place among 40 largest public companies of the industry under the examination. Discussion of strong and weak sides of information disclosure practice implemented by IDGC of North-West has been carried out. It included discussion of internal audit.

As a result of consideration of the corrected plan of the Committee’s operation, members of the Committee decided to implement the following joint meeting in February 2010.