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Public Joint Stock Company of Power Industry and Electrification of Kuban.
Development history

History of Kuban electrification began in the late 19th century with the commissioning of power plants intended for provision electric lighting of settlements, energy supply of Novorossiysk elevator and Ekaterinodar tramway.  Until 1917 there were 353 plants with total capacity of 13.7 MW (the largest in Ekaterinodar, Novorossiysk, Armavir, Yeisk, Maikop, Sochi, Anapa, Labinsk, villages Starominskaya, Krymskaya and Tuapse harbour). With the establishment of Soviet power in the Kuban region in April 1921 the Kuban-Black Sea Economic Council established “Elektrootdel” which main tasks were management of facilities at existing power plants, as well as construction of new ones.  

In 1922 association "Vodeltram" was founded in the capital of Kuban region, consisting of municipal and utility services for water supply, transport (tram) and electricity. The length of the transmission lines was 45 km, electric networks were designed for a voltage of 2 kV.  

With the approval of electrification plan began the rapid construction of power plants, but interrupted by the Great Patriotic War. By 1940, the total electric capacity of power stations reached 100 MW, and electricity generation in 1940 totaled 394 million kWh  

In 1942 - 1943 Kuban's territory was under occupation, the power base was almost destroyed.  

In order to restore the ruined power network of the Kuban and for its further development, by the Order of the People's Commissar of the USSR from March 14, 1944 No.66 the Krasnodar district energy management "Krasnodarenergo" (REU) was organized. The principal activities of RG were the production, distribution and sale of electricity and thermal energy, recovery and development of energy systems, power control and supervision over the operation of power equipment on plants. The jurisdiction of the RG on the Rights of the independent self-supporting enterprises were power plants, substations, network areas, repair-mechanical plant, the central warehouse, planning and surveying offices, industrial and research laboratory.  

By 1959 the installed capacity of Kuban power system was 337 MW (excluding diesel and isolated generating plants).  

In the late 50s - early 60s we installed transmission networks of 110 kV and 220 necessary for connecting the power system of southern Russia and the Caucasus, railroad network was electrified, electricity distribution facilities were built, electrification of rural areas reached 86% .  

In 1963, in accordance with the order of USSR Council of Ministers dated 14.05.63, city and rural electric grids were transferred to regional electricity board.  

The rapid growth of electricity consumption by the national economy of Kuban in 1970-1980 led to the construction of a large number of transmission lines and substations, switching to a higher voltage classes - 330 and 500 kV. The total length of transmission lines reached 90 thousand km and amount of substations of 35-500 kV exceeded 700.  

On November 1, 1988, in accordance with the order of USSR Council of Ministers dated 02.07.87 # 812, Krasnodar district network "Krasnodarenergo" was discontinued, and on the basis of its subordinate enterprises and organizations Krasnodar Production Association of Power industry and Electrification "Krasnodarenergo" was established.  

In 1993, in accordance with Russian legislation on privatization of state and municipal enterprises Krasnodar Production Association of Power industry and Electrification "Krasnodarenergo" was reorganized into “Kubanenergo" JSC with the following branches Krasnodar TPP, "Energonadzor" repair and construction company, training center, recreation centre, summer camp. In accordance with Presidential Decree of 15.08.1992 # 923 "On control of the power industry of the Russian Federation in the context of privatization" 49% of the Company’s shares were transferred as the payment of the authorized capital of RAO "UES of Russia" in 1993, while the remaining 51% stake of "Kubanenergo" were acquired via private subscription by employees of the Company and other persons/entities entitled to benefits under the State program of privatization.  

“Kubanenergo” JSC was established in order to gain profit when supplying consumers in Krasnodar region of the Republic of Adygea with electricity (both own generated energy and purchased from other manufacturers), and supplying consumers in Krasnodar with thermal energy of its own generation.  

During the last 5 years in "Kubanenergo" JSC, as power industry in general, has undergone major reforms.  

The main objective of reforming the Russian power industry is increasing of the efficiency of the industry, creating the conditions for its development by stimulating investment process, ensuring reliable and uninterrupted power supply to consumers.  

Electricity reform should solve the following problems:  
  • division of industry into natural monopolies (transmission and distribution, dispatching) and competitive (power generation and distribution) activities  
  • creating an efficient system of market relations in competitive businesses,  
  • non-discriminatory access to services provided by natural monopolies,  
  • efficient and fair government regulation of natural monopolies, which help reduce costs and ensures the investment attractiveness of the natural monopolies.  

In the process of reform "Kubanenergo" stopped implementing non-core activities and transferred dispatching functions to “System Operator of Unified Energy System"; the following companies were established: "Krasnodarenergoremont", "Krasnodarenergosetremont", Recreation centre “Energetik”,  Recreation centre “Plamya”; non-profit educational institution "Training Center “Kubanenergo” was established for advanced training and professional retraining of employees.  

In 2006 in the result of reorganization of "Kubanenergo" JSC the following companies  were formed:  
  • "Kuban Generation Company", the authorized capital of which consisted of generating capacity of the Company (Krasnodar CHP and hydroelectric power plants);  
  • "Kuban bulk power system", the authorized capital of which is formed of power grid facilities related to the Unified National Power Grid (220 kV and above);  
  • "Kuban energy selling company" with the functions of a supplier of electricity, as well as the purchase of electricity on the wholesale market and its delivery to final consumers.  

The main activity of the Company at the present time is transmission and distribution of electricity through grids of 110 kV and lower for the consumers in Krasnodar region and Adygea Republic. Activity of "Kubanenergo" Electricity is regulated by the government in terms of fixing tariffs for electricity transmission and rates for technological connection, as well as providing non-discriminatory access of consumers to the grid.  

From 1 July 2008,  "Kubanenergo" JSC is a dependent, and then affiliated company of "Russian Grids" JSC (till 04.04.2013 - "IDGC Holding" JSC), which has received the voting shares in the succession of RAO "UES of Russia" as a result of the reorganization of the latter.

Pursuant to the order, In accordance with resolution of extraordinary General meeting of shareholders from 23 March 2013, “IDGC Holding” JSC was officially named Open Joint Stock Company “Russian Grids” (in Russian language - Открытое акционерное общество  " Российские сети ". Changes into the Charter were introduced on 4 April 2013 and registered by Inter-District Office of the Federal Tax Service in Moscow # 46 and the entry to Unified State Register of Legal Entities was made.

On 22.06.2015 open joint stock company of power industry and electrification of Kuban (Kubanenergo JSC) was renamed into Public joint stock company of power industry and electrification of Kuban (Kubanenergo PJSC)

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© 2015 "Kubanenergo". 350033 Russia, Krasnodar, ul. Stavropolskaya, 2A
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