The main results of operations by Kubanenergo for 2011 were characterised by the following trends in carrying out actions to achieve key performance indicators:
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the target indicator Return on Equity on the actual basis of 2011 was not achieved: with a plan of minus 13.78% its actual value was minus 16.14%.
The biggest influence on the failure to achieve this target was a decrease in equity capital at the beginning of the accounting year arising from the creation of a reserve for doubtful accounts in 2011, and the retrospective recalculation related to this of comparative indices since 2009 (point 15 of the statement on financial accounting 1/2008). To improve the level of veracity of financial accounting, in accordance with an order of the Ministry of Finance of the Russian Federation of 24.12.2010 в„– 186n On Making Amendments to Normative Legal Acts for Financial Accounting and the repealed order of the Ministry of Finance of the Russian Federation of 15 January 1997 в„– 3 the financial statements were drawn up in accordance with account 84.
The record of the reserve for doubtful accounts at 31 December 2010 changed the indicator for Equity Capital at Beginning of Year, which at 1 January 2011 was 11 912 million rubles with an initial (confirmed) level of 13 934 million rubles;
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the planned target for Electricity Losses according to the results for 2011 was not achieved: with a plan of 12.76% (2468 million kilowatt hours) actual losses were 13.93% (2784 million kilowatt hours).
The growth in actual losses arose due to losses in the Sochi energy district which is currently functioning to a repair schedule because of the reconstruction in progress of power facilities as part of the preparations for the 2014 Olympic Games.