Yearly report 2011

Русская версия

Kubanenergo and its position in the market

Main line of business

Kubanenergo transmits and distributes electricity to customers via 110 kilovolt and lower electricity networks to population centre, villages, towns and regional centres in Krasnodar Region, including the city of Sochi and the Republic of Adigeya.

Position on the electricity network market

Kubanenergo is the largest electricity network company in Krasnodar Region and the Republic of Adigeya. The output volume in the Company's electricity networks totalled 92% of the total electricity output in the region. The share of other network company in the region is not large and they do not have a significant effect on the work of the Company. High reconstruction rates and modernisation of Kubanenergo"s electricity supply network, as well as dynamic growth in volumes of technological connection to its networks means it can be presumed the Company will maintain its dominant position on the regional electricity supply market in the future.

Service consumers

Consumers of Kubanenergo electricity supply services are:

Consumers of services in technological connection to networks are corporate entities and natural persons interested in technological connection to Kubanenergo networks who have filed a request for technological connection.

Regulating operations

The main activity of the Company is carried out in the conditions of a natural monopoly regulated by the state by way of setting tariffs for electricity transmission and ensuring undiscriminating access by consumers to electricity networks.

In Krasnodar Region and the Republic of Adigeya in 2011 the uniform (boiler) tariff for services in electricity transmission remained in force. Kubanenergo has the status of ranking network company/"boiler holder" in the approved "boiler above" computation scheme. This schedule stipulates that all energy supply companies selling electricity on regional markets pay Kubanenergo for electricity transmission services via electricity networks of all regional electricity systems within the framework of contracts for electricity transmission, and the Company pays for services in electricity transmission to network companies in the region.

Social significance of activities

The territory in Krasnodar Region and the Republic of Adigeya served by Kubanenergo covers an area of 83 000 square kilometres and has a population of more than 5.5 million. The main task at the Company is to provide reliable and stable electricity supplies to consumers in the region and satisfy the growing demands of its economy for electricity. Kubanenergo is the largest taxpayer in the Region and takes an active part in its social and economic life, providing jobs and work for suppliers in allied sectors and carrying out various social programmes and charitable works.

Public company status. Kubanenergo is a public company whose shares are listed on the leading Russian stock markets — the RTS and Micex2. The largest shareholders in the Company are MRSK Holding (45.77% of voting shares), the Russian Federation represented by the Federal Agency for State Property Management (21.37%) and Neft-Aktiv (27.97%).

  1. 1.

    In order to execute the given contracts electricity retail suppliers in their turn concluded contracts for electricity transmission with Kubanenergo. In 2010 these included the following electricity retail suppliers: Kubanenergosbit, Nizhinovatomenergosbit, Dizazh M, NESK, MAREM, Rusenergosbit, Rusenergoresurs, KubanResurs and RN-Energo.

  2. 2.

    19.12.2011 RTS ceased working as the result of its reorganisation arising from the merger with the Micex.

Table. Kubanenergo today: key asset characteristics

total length of electricity power lines
89 000 kilometres
maximum permissible design capacity of the energy system
6 613.3 MVA
load level of design capacity of the energy system in 2011
55.3% of maximum (3 658 MVA) underemployment of design capacity is due to the need for reserves in case of blackouts or in order to carry out planned repairs
total number of consumer electricity metering points connected to Kubanenergo electricity networks in accordance with contracts for electricity transmission
1 219 215
electricity network branches
11
  1. Detailed information about the property portfolio of Kubanenergo is contained in Appendix №5 of this annual report.