OJSC Kubanenergo
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Strategic Goals of OJSC Kubanenergo

The mission of OJSC Kubanenergo is to provide reliable, effective and safe electricity transmission to consumers, and to ensure stable income from the Company’s operations for the Company shareholders.

The aim of operation of the distribution grid complex is to provide long-term reliable, high-quality and affordable energy to consumers throughout the region at the stage of distribution of electricity by organizing the most efficient infrastructure possible.

The company, being part of the unified distribution grid complex of Russia, seeks to achieve the objectives defined at the state level. The Russian government approved the development strategy of the electric grid complex of the Russian Federation, which sets targets for the electric grid complex until 2030, on 03.04.2013, including:

1. Increasing the reliability and quality of electricity supply services provided to a level that completely satisfy customer needs, including:

  • Improving the quality of customer service (including reducing the number of steps required for technological connection to electric grids from 10 to 6 by 2015, and to 5 by 2018):

In order to improve the quality of customer service in 2014, OJSC Kubanenergo produced functional expansion of its "Personal Account" interactive service on the Company website, created the possibility of filing an application for review, replacement and installation of electricity meters, as well as entering current electricity meters readings.

In 2015, the Company plans expansion of the functionality of the Personal Account feature, namely applications for the implementation of technical conditions, providing the customer with an invoice for technological grid connection agreements, and sending inquiries (complaints) and surveys.

  • Reduction in undersupply of electric power:

Overall in the reporting year OJSC Kubanenergo fulfilled the primary goal of its industrial activity – to provide quality and uninterrupted power supplies to consumers.

In accordance with the Rules of investigating the causes of accidents in the power industry, approved by Decree of the Russian Federation dated 28.10.2009 № 846, OJSC Kubanenergo thoroughly investigate the causes of accidents.

Thus, based on the results of investigations of accidents in 2014, a total of 5,561 events were scheduled for execution, and 5,460 of these events were fulfilled. Another 101 were in the process of being fulfilled. There were no events that weren’t fulfilled on time.

However, due to adverse weather events and massive outages of power grid equipment, there was an increase in basic accident indicators. Thus, the total undersupply of electricity to consumers increased by 2.09 times year-on-year and amounted to 17,194.593 thousand kWh.

There were two accidents recorded in 2014, the causes of which, according to p.4 of the Rules of investigating the causes of accidents in the electric power industry, approved by the Government of the Russian Federation dated 28.10.2009 №846, were subject to an investigation by the agency of federal state power supervision.

In order to ensure timely liquidation of technological violations and to minimize the time needed to eliminate power outages to consumers in 2014, the Company performed the following activities:

  • Work was organized for liquidating the consequences of power outages under the direction of the management board of OJSC Kubanenergo, at the meetings of which the need to send additional mobile teams to eliminate the effects of exposure to the elements, their quantity, the adequacy of teams ready, the need to send special equipment, and other issues are decided.
  • The readiness for action of 22 OJSC Kubanenergo mobile teams located around the Krasnodar Territory and the Republic of Adygea was ensured. These mobile teams are provided with the required amount of protection means, accessories and means of communication, with 53 technical units.
  • 50 agreements were concluded with subcontractors on their involvement in emergency responses, which will make it possible to further operatively engage 541 people and 341 units of special purpose vehicles.
  • The availability of 112 reserve sources of electricity supplies for a total capacity of 11,040.5 kW was ensured, which will make it possible to ensure power supplies to the most important socially significant facilities in the case of major technological violations.
  • The maximum arrival time of emergency and recovery teams to the place of possible technological violations (accidents) is 2 hours.
  • Information was exchanged with the subsidiary companies of JSC Russian Grids with which Agreements on cooperation in the prevention and elimination of consequences of accidents and emergencies at electric power facilities have been signed in terms of the availability and storage of emergency reserves, reserve sources of electricity supplies, equipping mobile teams, and special vehicles. The emergency reserve is complete.
  • Comprehensive measures were adopted to prepare the electric grid complex of OJSC Kubanenergo for the autumn-winter 2014/2015 period.

For 2015, OJSC Kubanenergo has scheduled command and staff training (exercises), training at power facility objects, special tactical exercises for prevention and liquidation of technological violations and emergencies at power plants, including those in preparation for the autumn-winter period of 2015-2016.

2. Increased security of power supplies, including a decrease in the total number of accidents, including unrecorded accidents.

In order to improve labor discipline, reduce accidents and human error at the facilities of the united electric grid complex, OJSC Kubanenergo has a Program of Measures to Reduce Systemic Risks of Injuries and a Comprehensive Program of OJSC Kubanenergo to reduce the risk of injury to Kubanenergo personnel and third parties at the facilities of the Company’s electric grid complex for the period of 2015-2017 years, approved by the Company Board of Directors (Minutes of 30.12.2014 №201/2014). Despite the large amount of work being done on occupational safety and health, including the prevention of injury, there were three work accidents in the reporting year.

No cases of occupational disease occurred in the staff of OJSC Kubanenergo in 2014.

3. Improving the efficiency of the electric grid complex, including:

  • Reduction of specific investment costs by 30 percent relative to the 2012 level:

To achieve this goal, the Company selects contractors for the implementation of investment projects on a competitive basis, and seeks to enter construction contracts with contractors at a cost below the prescribed summary estimate.

The Company's investment program for 2015 and the period from 2016-2020 provided for reducing the cost of investment projects during the period from 2015 to 2020 by RUB 4.47 bln, including by year:


Expected reduction in investment project costs, RUB mln















  • Reducing operating costs by 15 percent by 2017 vs. the 2012 level, taking into account inflation per unit of service of electrical equipment:

To reduce the operating expenses of all subsidiaries and affiliates of JSC Russian Grids, by order of JSC Russian Grids dated 22.10.2013 № 100r, the Method of calculating the effect of reducing the cost of service per unit of electrical equipment of subsidiary companies of JSC Russian Grids for 2013-2018 was approved. On the basis of this methodology, the Company developed a Program of Performance Management for OJSC Kubanenergo for 2014-2018 for achievement of economic effects from reducing the cost per unit of OJSC Kubanenergo electrical equipment, hereinafter the PPM.

As part of cost optimization, the Company has planned a set of measures aimed at reducing costs by 15% by 2017, and by 18% by 2018 of regular operating expenses per 1 conventional vs. the 2012 level. The economic effect from implementation of PPM in the period from 2014 – 2018 will be RUB 5,824.4 mln.

Cost optimization is the result of the Company’s systematic work in the framework of activities of the Cost Management Program, hereinafter CMP.








Production expenses, RUB mln





Excluded expenses, RUB mln





Costs included in the base of the PPM (at current prices), RUB mln





Composite index deflator, %





Costs included in the base of the PPM (in 2012 prices), RUB mln





Effect from implementation of PPM in the current year, RUB mln





Effect from implementation of PPM vs. 2012 level *, %





Number of conventional units





Fixed costs in thousand rubles per 1 conventional unit (without the inflation factor)





* The indicator “Effect of fulfillment of PPM as a percentage vs. the 2012 level” was received as a ratio of the effect of implementation of PPM in the current year in thousands of rubles (in 2012 prices) vs. the 2012 level.

The total economic impact of the implementation of CMP measures aimed at optimizing operating costs and expenses in the field of technical re-equipment, reconstruction and new construction, as well as identifying additional revenue, will amount to RUB 1,565.0 mln in 2014, or 116.1% of the planned target of RUB 1,347.8 mln.

Main directions for achieving the key effectiveness indicators:

  • activities in the field of energy conservation and energy efficiency;
  • measures for the implementation of regulated purchasing activity of OJSC Kubanenergo;
  • measures for paying salaries;
  • other activities (non-sales activities).

Controlled costs in 2014 amounted to RUB 4,768.6 mln, with a planned amount of RUB 4,641.5 mln, which was RUB 127.1 mln more than planned. This increase is due to the growth in the number of conventional units by 20,938 conventional units as compared to the level of planned parameters for 2014.

The fixed costs of OJSC Kubanenergo per standard unit (without the inflation factor) for the reporting period equaled RUB 6,470 vs. a planned value of RUB 6,650 per unit, which was a reduction vs. the planned amount of 2.7%. This positive trend is the result of systematic work on optimization of the Company's costs connected to the enterprise’s production activities.

  • Reducing the amount of losses by 11 percent by 2017 vs. the 2012 level:

In order to reduce the relative magnitude of electricity losses by 11% by 2017 vs. the actual performance in 2012, OJSC Kubanenergo plans to implement measures aimed at reducing power losses during transmission of electric power under the terms of energy service contracts.

The list of projects in the field of energy savings and cost-effectiveness that are suitable for implementation in terms of energy agreements (contracts) was approved by the Board of Directors of the Company on 10.12.2013 (corrected on 15.10.2014).

At the end of 2014, the effect of the implementation of measures aimed at reducing electricity losses during transmission totaled 75,925,000 kWh (RUB 302,191,000), including:

  • organized events – 60,750,000 kWh (RUB 232,460,000),
  • technical measures – 2,649,000 kWh (RUB 5,434,000),
  • improvement of electricity measuring – 12,525,000 kWh (RUB 64,365,000).

This work is expected to be continued in the future.