The main goal at Kubanenergo for 2012 is operating through the winter and summer periods of maximum loads without emergencies, timely execution of actions by supervisory agencies to receive the certificate of readiness on time, carrying out investment and repair programmes, which will bring the opportunity for further connection of customers to the Company's networks, and minimising above norm losses.

In 2012 in comparison with 2011 it is forecast there will be an increase in revenue from technological connection. In drawing up the planned targets for 2012 and the following years decisions by the Regional Electricity Commission -Department of Prices and Tariffs of Krasnodar Region on setting standardised tariff rates to covering expenditure on technological connection (Order of 06.05.2011 №7/2011-e), as well as approval of payments for technological connection for individual projects such as the Tretya Generiruyuschaya Kompaniya Optovogo Rinka Elektroenergii at 2911.18 million rubles (not including VAT), Primorskaya Kompaniya at 380.64 million rubles (not including VAT), and Stroiform at 40.67 million rubles (not including VAT) (Order of the Regional Electricity Commission -Department of Prices and Tariffs of Krasnodar Region of 24.08.2011 №25/2011-e).

The main criteria for achieving the planned objective in indicators for service provision in transmitting electricity are the following:

• there should be no growth in expenditure from planned objectives for uncontrolled items of expenditure by the Company;
• reducing losses of electricity to a level of 12.76%;
• compliance with the level of electricity tariff and electricity consumption.

Significant risks in planning the revenue from the Company's services in electricity transmission in 2012 are the following:

• imprecise planning of electricity balances and capacity by participants in the regional market and the Regional Electricity Commission -Department of Prices and Tariffs of Krasnodar Region;
• confirmation in the middle of the year of tariffs for electricity transmission for newly formed neighbouring network organisations and the occurrence of expenditure on them not compensated by the tariff;
• on the basis of the Decree of the Government of the Russian Federation of 04.11.2011 №877 On Relations between Suppliers and Consumers of Electricity on the Retail Market there is a risk of a move by retail companies from calculations for services in electricity transmission with flat rate tariffs to dual rate tariffs, in connection with which a decrease in revenue from electricity transmission services by Kubanenergo is possible;
• the poor payment discipline of electricity retail companies and non-compliance by them with contractual obligations.