Terms and Abbreviations

Average Headcount — an overall number of employees for each calendar day of a period including holidays (banking holidays) and days‑off divided by the number of calendar days in the period.

c.u. — conventional units for electric equipment.

Commercial Metering of Electricity (Capacity) — the process of measuring the amount of electricity and determining the amount of capacity, as well as collecting, storing, processing, transmitting the results of these measurements and generating, including by calculation, data on the amount of electricity (capacity) produced and consumed for mutual settlements for the supplied electricity and capacity, as well as for services related to the said supplies.

Common‑Pot Tariffs for Electricity Transmission — uniform tariffs for electricity transmission services in the Krasnodar Territory and the Republic of Adygeya for all consumers of electricity transmission services irrespective of which power grid organisation they are connected to, differentiated according to the voltage levels.

Corporate Year — a period between the election of members of the Board of Directors and the Auditing Commission at the General Meeting of Shareholders and the next annual General Meeting of Shareholders.

Delivery to the Grid — the amount of electric power received in the distribution grid from the delivery points of the Uniform National Power Grid, generation points and other related systems, formed according to the voltage level on the balance responsibility border.

Disturbances (accident) — an unauthorised disconnection of normal power grid operations.

EBITDA — calculated as follows: pre‑tax profit before interest expense, depreciation, amortisation and net charge/(reversal of) impairment loss on fixed assets and rights‑of‑use assets.

Electricity Metering Device — a measuring device designed to determine the amount of active and/or reactive electrical energy that passed through it in a certain period of time to the place of consumption of electrical energy.

EPSS — Emergency Power Supply Sources.

FEC — Fuel & Energy Complex.

Grid Connection — a technical connection of consumer terminals (power units) of legal and natural entities to the power grids of the company that provides electricity transmission services.

Grid Organisation, Distribution Grid Company — an organisation responsible for transmission and/or distribution of electricity in power grids.

Guaranteeing Supplier — a commercial organisation obliged to enter in contracts for electricity sale and purchase with any electricity consumer or a person acting on behalf of such consumer willing to buy electricity in accordance with Federal Law No. 35‑FZ on Electrical Power dated 26 March 2003 or voluntarily assumed liabilities.

• Actual (Reported) Electricity Losses — a difference between the amount of electric power supplied to the power grid from other grids or power producers and the amount of electric power consumed by the power receivers connected to the grid and transferred to other grid operators;
• Standard Electricity Losses — calculated loss values set by authorised federal executive bodies for the aggregated electricity transmission lines and other facilities owned by the grid operator and differentiated according to the voltage levels; the cost of normal losses of electricity is included in the amount of the payment for the transmission of electricity (tariff);
• Excessive (Commercial) Electricity Losses — a difference between actual and standard electricity losses, paid to the full extent by the operator of the grid where these excessive losses occurred.

Net Delivery — the amount of electric power transmitted (supplied) via distribution grids to power supply points of consumers and (or) downstream grid operators, which was formed according to the voltage level on the balance responsibility borders. It corresponds with the physical process of electricity transmission via power grids.

OTL — Overhead Transmission Line.

PAMS — Production Asset Management System.

PBU — Accounting Regulations.

PDGA — distribution power grid areas in branches of the Company’s branches, comprising and controlling (via the Head of distribution power grid region) several grid sections and the following groups: operational dispatch group, mechanical aid group, and energy transport group.

PG — Power Grids.

PGR — Power Grid Regions in the Company’s Branches.

Power Centre — substation, substation equipment and adjacent distribution grids.

PTL — Power Transmission Line.

R&D — Research and Development.

RAS — Russian Accounting Standards.

Related Grid Organisation — a grid operator that is a legal owner of the power grid facilities connected directly to the power grids of other operators (it relates to).

Required Gross Revenue, own RGR of the Company — an economically feasible amount of funds necessary for the organisation to perform regulated activities within the reporting period of regulation without the costs of services of territorial grid companies, Rosseti, PJSC, and the purchase of electricity to compensate losses.

Required Gross Revenue, regional RGR — an economically feasible amount of funds necessary for grid organisations functioning in the Krasnodar Territory and the Republic of Adygeya to perform regulated activities related to power transmission during the reporting period of regulation.

S&A — Subsidiaries and Affiliates of the Company or Rosseti, PJSC.

SS — Substation.

STRD‑KT — State Tariff Regulation Department of the Krasnodar Territory – an executive authority of the Krasnodar Territory in the field of state regulation of tariffs.

Technical Electricity Metering — metering to control electricity consumption within power plants, substations, businesses, buildings, flats, etc. Meters used for technical metering are called technical meters.

Technical Losses — losses of electric power in power grid lines and equipment due to the physical processes occurring when transmitting power in accordance with the specifications and operating modes of grids and equipment, taking into consideration the power consumption of substations.

TGO (territorial grid organisation) — a commercial organisation that owns power grid facilities by right of property or other grounds set forth in federal laws and provides electricity transmission services using those, performs proper grid connection of power recipients (power units) of legal and natural entities to power grids, apart from signing power transmission contracts using the power grid facilities outside the Uniform National (Russian) Power Grid.

TS — Transformer Substation.

UNPG — Unified National Power Grid (of Russia).

Volume of Services Rendered — the amount of electric power transmitted via the power grid facilities owned by the grid company on any grounds compliant with the laws of the Russian Federation.