History of Origin and Development of the Kuban Energy System and Rosseti Kuban, PJSC

Start of the Kuban energy system — construction of small power plants in the region.

Establishment of Soviet rule in Kuban, nationalisation of all industrial enterprises.

Establishment of the Electricity Department under the Kuban Black Sea National Economic Council to manage power facilities in Kuban.

In total, there were 353 electric power plants operating in Kuban, with a total capacity of 13.7 MW; 16,200 of electric lamps and 621 electric motors were connected to the grid.

Establishment of the Vodeltram association, comprising the city and municipal and public water supply services, transport (tram) sservices and electricity supply services in Krasnodar. The length of power transmission lines was 45 km, and power grids were rated at 2 kV.

Establishment of the Northern Caucasus Energy Authority — Sevkavenergo, which managed power facilities in Kuban.

Division of Sevkavenergo into two independent departments in 1934 Azcherenergo (Rostov‑on‑Don) and Sevkavenergo (Pyatigorsk).

Spin‑off of the Krasnodar District Energy Authority (Krasnodarenergo) from Azcherenergo, with its core activities being the generation, distribution and sale of electricity and heat, restoration and development of the energy system, control of energy consumption and operational supervision of Kuban power installations. Krasnodarenergo managed power stations, substations, power grid regions (PGR), electricity retailing services, a mechanical repair plant, a central warehouse, a design and survey bureau, a production and research laboratory as independent self‑supporting enterprises.

Construction of 110 and 220 kV main power transmission lines for connection with energy systems in Russian South and Transcaucasia; electrification of the railway system in the Krasnodar Territory, construction of power distribution facilities, electrification of rural settlements.

Kuban urban and rural power grid organisations were transferred from the Regional Department for Public Utilities to Krasnodarenergo.

Installation of two first gas turbine plants (GTP) in the USSR, each of 100 MW capacity, at the Krasnodardskaya CHPP. The total capacity of the CHPP, the block unit and the two GTPs was 959 MW.

Significant increase in the construction of new power transmission lines due to explosive growth in electricity consumption. Total PTL length grew to 90,000 km, and the 35–500 kV substations exceeded 700 in number.

Krasnodarenergo was wound up and transformed into the Krasnodar Production Association of Power Supply and Electrification (still named Krasnodarenergo).

Krasnodarenergo was privatised and reorganised into Kubanenergo, OJSC. Apart from local power grid operators, Kubanenergo included the Krasnodarskaya CHPP, Energonadzor, repair and construction enterprises, a training school, a corporate spa resort, and a summer pioneer camp.

RAO UES of Russia, OJSC vested 49% of Kubanenergo’s shares as a payment for authorised capital, and remaining 51% were acquired by employees and other parties entitled to benefits according to State Privatisation Programme.

During the reformation stage of Russia’s electric power industry, Kubanenergo, OJSC was released from service and non‑core activities and dispatching functions by splitting them off into separate companies. Thus, the operational dispatch management was transferred to SO UES, OJSC; Open Joint Stock Companies Krasnodarenergoremont and Krasnodarenergosetremont, Energetik Health Resort, Plamya Health Facility were established, and non‑state non‑profit educational institution Kubanenergo Training Centre was set up.

The reforms taking place in the electric power industry resulted into Kubanenergo splitting into Kuban Generating Company, OJSC (generating capacities), Kuban Main Grids, OJSC (grid facilities), Kubanenergosbyt, OJSC (guaranteeing electricity supplier, purchase of electricity in the wholesale market to deliver it to the end users).

Since 1 July 2008, Kubanenergo, OJSC became a dependent company in IDGC Holding, OJSC, which received a block of voting shares in Kubanenergo, OJSC by way of succession under the spin‑off balance sheet after the restructuring of RAO UES of Russia, OJSC. In 2012, IDGC Holding, OJSC acquired a block of additional shares in Kubanenergo, OJSC, and the Company became a subsidiary to IDGC Holding.

The Company’s primary function in IDGC Holding lied in partaking in how the national distribution grid complex evolves.

Using Rosseti, OJSC as a base, a single power grid management company was established (which included main power transmission and distribution lines), aimed to coordinate all grid operators in Russia in terms of tariffs, technical policy and investment planning, to ensure transparency of financial and business operations, and to engage in anti‑corruption policy.

Rosseti’s share in the authorised capital of Kubanenergo, OJSC rose to 92.24%.

Kubanenergo brand name included an indication of the Company’s public status — Kubanenergo, PJSC.

The Company became a key participant of a national‑level project involving development of advanced energy infrastructure on the Taman Peninsula to ensure the region’s growth and enable electricity delivery to the dry‑cargo area of the seaport of Taman.

The share of Rosseti, PJSC in the authorised capital of Kubanenergo, PJSC rose to 92.78%.

Commissioning of the 220 kV Port substation. Rosseti’s share in the authorised capital of Kubanenergo, PJSC rose to 93.44%.

While following the trend of transitioning to a single brand architecture of Rosseti Group in the Krasnodar Territory and the Republic of Adygeya, Kubanenergo, PJSC was officially renamed into Rosseti Kuban, PJSC.

By the end of the reporting year, Rosseti’s share in the total number of outstanding shares of the Company was 93.96%, and as of 9 January 2023 — 99.69%.