PJSC Kubanenergo and its Market Position

PJSC Kubanenergo carries out transmission and distribution of electricity to customers through the electric grids of 110 kV and less between settlements, and in rural areas, certain cities, and regional centers of the Krasnodar Krai, including the city of Sochi, and the Republic of Adygea.

PJSC Kubanenergo is a publicly-traded company, the shares of which are traded on the Russian MICEX Stock Exchange.

The territory serviced by PJSC Kubanenergo in the Krasnodar Krai and the Republic of Adygea has an area of 83 thou.sq.km, and a population of more than 6.0 mln people.

The Company’s mission is to provide reliable and uninterrupted power supplies to customers in the region and meet the growing needs of the region’s economy for electricity.

PJSC Kubanenergo is the largest taxpayer of the region, and actively participates in the region’s social and economic life, providing job creation and using services from companies in related industries while implementing various social programs and charity events.

The Company’s principal activity is performed under conditions of a natural monopoly regulated by the government in part of:

  • setting tariffs for power transmission and technological connection of customers’ power receivers to the Company’s electric grid;
  • ensuring non-discriminatory access for customers to the specified Company’s services on equal terms.

PJSC Kubanenergo today: Key asset characteristics

Total length of transmission lines

90,420.63 km

Maximum allowable power grid capacity (of 110 kV substations)

7,012 MVA

Load level of the electric power system’s design capacity in 2015

62 % of maximum capacity (4,348 MVA)
incomplete use of total capacity was due to the need for making reserve power in case of a power failure or to carry out scheduled maintenance

Total number of metering points for consumers connected to the grid of OJSC Kubanenergo in accordance with signed contracts for electricity transmission

1,116,194

Power grid branches

11

Power grid branches of PJSC Kubanenergo (regional electric grids)

Power grid branches of PJSC Kubanenergo (regional electric grids)

PJSC Kubanenergo is the largest electric grid company in the Krasnodar Krai and the Republic of Adygea. Company’s share in the regional energy market (of the region’s necessary gross proceeds) in 2015 amounted to 70.4 %. Total supply in the region is higher than the level of 2014 and in total amounts to 25.5 bln kWh. High rates of reconstruction and renovation of the Company’s electric grids as well as the dynamic growth of technological connection volumes to the Company’s grid, suggest that in the future the Company will retain a dominant position in the regional market for electricity transmission.

Company’s share in the regional market for electricity transmission (of the region’s necessary gross proceeds – region’s NGP) in dynamics for 2013–2015, %.

Company’s share in the regional market for electricity transmission (of the region’s necessary gross proceeds – region’s NGP) in dynamics for 2013–2015, %.

Decrease of PJSC Kubanenergo NGP share in 2015 is due to the introduction of new TGC in the Company’s service region in 2015 that is the branch of PJSC FGC UES Sochi enterprise of the main electric grids having NGP equal to RUB 1,728.8 mln.

PJSC Kubanenergo remains the leader in the market for the services rendered.

The largest companies engaged in similar activities in the Krasnodar Krai and the Republic of Adygea are: JSC NESK Electroseti, OJSC Oboronenergo, OJSC Russian Railways, and JSC NGT-Energy.