Scheme of the Company’s Electricity Transmission Operating Flows

Electricity supply to the Company’s grids in 2023, %

Consumers of Rosseti Kuban’s electricity transmission services:

  • Guaranteeing suppliers (in the reporting year, NESK, JSC and TNS Energo Kuban, PJSC) — wholesale and retail market entities engaged in energy sales activities and obliged to conclude an agreement with any consumer who applies to it and located within the boundaries of its area of operations
  • Other companies involved in energy supply activities (69 in the reporting year)
  • Some consumers (80 in the reporting year) that signed direct agreements to purchase electricity with Rosseti Kuban (Novoroscement, JSC, Tamanneftegaz, CJSC, Eurochem‑Belorechenskie Minudobrenia, LLC, Agrofirma‑Plemzavod Pobeda, Sad‑Gigant, OJSC, Verkhnebakansky Cement Plant, OJSC, Abrau‑Durso, CJSC, Novoroslesexport, JSC, RAMO‑M, JSC, NMTP, PJSC, Kanevskoy Gas Equipment Plant, LLC, etc.)

The Company receives payment for its electricity transmission services from electricity retailers and from direct consumers, respectively.

To compensate for electricity losses occurred during transmission in the Company’s grids, Rosseti Kuban buys the corresponding amount of electricity from guaranteeing suppliers such as TNS Energo Kuban, PJSC and NESK, JSC, as well as from VIE, LLC and LUKOIL‑Kubanenergo, LLC.

Since 2007, the region has had a common‑pot tariff for electricity transmission services in place which applies to all consumers of electricity transmission services in Kuban and Adygeya, regardless of which grid organisation they are connected to.

“Pot on the top” is the main negotiated tariff model under which settlements are made

Scheme of the Company’s Electricity Transmission Operating Flows

Rosseti Kuban, PJSC has the status of a backbone grid organisation — a “holder of the pot”. According to this model, Rosseti Kuban receives consumers’ payments for electricity transmission services (regardless of which grid organisation they are connected to), then the Company settles accounts at individual tariffs with downstream grid organisations the grids consumer terminals are connected to.