8. Operating Expenses

Year ended
31 December 2011
Year ended
31 December 2010
Electricity transmission 17,010,116 16,813,340
Purchased electricity 15,295,151 13,032,523
Personnel costs (Note 9) 13,432,700 11,635,300
Depreciation and amortization 6,284,802 5,011,364
Raw materials and supplies 2,149,983 1,735,089
Rent 576,615 477,251
Electricity for own needs 481,654 441,100
Repairs, maintenance and installation services 467,218 533,581
Taxes other than income tax 348,930 337,303
Transportation costs 332,151 416,462
Security 272,384 214,618
Allowance for impairment of accounts receivable 477,586 272,690
Information services 187,485 221,586
Insurance 163,385 167,424
Consulting, legal and audit services 66,471 75,604
Telecommunication services 40,942 102,152
Bad debt written-off 21,237 6,120
Membership fee 6,413 9,140
Outsourcing services 763,246
Other 3,447,554 1,836,897
61,062,777 54,102,790

Other operating expenses include expense for accrual of provision for litigations and claims of RUB 1,041,516 thousand (2010: RUB 34 670 thousand).

Return to Notes to the Consolidated Financial Statements for the year ended 31 December 2011