OJSC Kubanenergo
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OJSC Kubanenergo and its market position

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

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

The territory serviced by OJSC Kubanenergo in the Krasnodar Territory and the Republic of Adygea has an area of ​​83,000 square km, and a population of more than 5.9 million people. The company's mission is to provide reliable and stable power supplies to consumers in the region and meet the growing needs of the region’s economy for electricity. OJSC Kubanenergo is the largest taxpayer of the region, and actively participates in the region’s socio-economic life, providing job creation and using services from companies in related industries while implementing various social programs and charity events.

OJSC Kubanenergo today: Key asset characteristics *

Total length of transmission lines

90,000 km

Maximum allowable power grid capacity

6,774.9 MVA

Load level of the electric power system’s design capacity in 2014

60.95% of maximum capacity (4,129 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

1,113,113

Power grid branches

11

Power grid branches of OJSC Kubanenergo (regional electric grids)

Power grid branches of OJSC Kubanenergo (regional electric grids)

OJSC Kubanenergo is the largest electric company in the Krasnodar Territory and the Republic of Adygea. The volume of electricity supply to the Company’s power grids makes up 87% of the total electricity supply in the region. The share of all other grid organizations serving the region is low (13%), and these companies do not have a material effect on the Company. The high rates of reconstruction and renovation of the electric grids of OJSC Kubanenergo, as well as the dynamic growth of technological connection to the Company’s network, suggest that in the future the Company will retain a dominant position in the regional market for electricity transmission.

Company share in the regional market for 110 kV and less power transmission services as a change in the years 2012–2014, %

Company share in the regional market for 110 kV and less power transmission services as a change in the years 2012–2014, %

The tendency of the Company’s share growth in the regional market for power transmission services suggests that OJSC Kubanenergo remains the leader in the market for the services rendered.

The largest companies engaged in similar activities in the Krasnodar Territory and the Republic of Adygea are: OJSC NESK Electrogrids, OJSC Oboronenergo, OJSC Russian Railways, and OJSC Neftegaztekhnologiya-Energiya.


* A detailed description of the asset portfolio of OJSC Kubanenergo is contained in Appendix 4 of this annual report.