staff turnover arising from dissatisfaction on the part of the employee with the work place (labour conditions, salary, job content, etc).

tariffs on electricity transmission services in Krasnodar Region and the Republic of Adigeya differented according to tension for all consumer services in electricity transmission regardless of whose network those consumer are connected.

a method of regulating tariffs for network distribution companies used on calculations for setting tariffs, is set using the return on invested capital method and is established for a long term period. One of the key parameters of RAB regulation is the long term nature of tariffs set, recoverability of invested resources, which reduced the investor’s risks and makes long term loans possible. In addition the method guarantees the safety of investments and this also becomes a incentive to invest in the business. RAM simultaneously offers fair income from investment in the capital of the organisation regulated, correlated to return on investment in other assets with allied risks.

loss of electricity to consumers as the result of a disturbance to the electricity network.

an economics based volume of monetary resources necessary to a company to carry out regulated activities during the accounting period of regulation.

expenditure which cannot be affected which are not changed as the result of management decisions by managers of the Compay during the given period. Non-influenceable costs include the following: purchased electricity to compensate for losses; services of electricity transmission companies; services of FSK EES; depreciation; leasing; taxes, including insurance; rent.

open joint stock power industry and electrification company of the Kuban.

the amount of electricity transmitted via technical electricity network equipment belonging to Kubanenergo as title holder or other basis set by legislation in the Russian Federation.

the difference between reception of electricity into the network and its transfer out of the network at delivery points along boundaries.

the volume of electricity transferred (delivered) via distribution networks to customers’ and (or) lower level network companies’ delivery points, set by level of tension by boundary. Corresponds to the physical process of electricity transmission via electricity networks.

Actual (accounting) electricity losses — the difference between the volume of electricity delivered into the electricity network from other networks or from electricity producers, and the volume of electricity required by power receiver devices connected to this network, as well as transmitted to other network companies.

Normative electricity losses — calculated value of losses set by an executive body authorised by a Federal body in respect of the aggregate of electricity transmission lines and other electricity production facilities belonging to the network company, differentiated by level of tension. The cost of normative electricity losses is included in payments for electricity transmission (tariff.

Abnormal (commercial) electricity losses — the difference between actual and normative electricity losses; the network company pays in full in the networks where the abnormal electricity losses occurred.

Losses under load — losses depending on the load in transformers and lines occurring during the process of electricity transmission.

a network company owning as title holder or on other basis electricity production facilities directly technologically connected to the electricity networks of another network company (in relation to which it is neighbouring).

the length of the shortest period in which the accrued net income becomes and in the future remains positive.

losses of electricity in lines and equipment in electricity networks caused by physical processes and arising during transmission of electricity in accordance with performance specifications and work schedules of lines and equipment taking into account electricity expenditure on the needs of the substation itself.

unplanned interruption of the normal work of the electricity network.

technological connection of power receivers (power plants) owned by corporate entities or natural persons to the electricity networks of companies providing electricity transmission services.

substation busbars with tension of 110, 35 or 6/10 kilovolts.

interaction with investors, a type of strategic marketing activity by the company including questions on disclosure of information, financial policy and providing existing and potential investors with appropriate information on the current state of affairs in the company and its future prospects.

the profitableness of equity capital provided by cash flow and calculated for the year and expressed as a percentage.

ROE = net present value / equity capital, where:

equity capital — (line 1300 of the Balance Sheet at the beginning of the planned year);

net present value = net profit - D1 - D2 - D3 - D4, where:

net profit — (line 2400 of Profit and Loss Statement (form 2 of the annual financial statement on shipping for the financial year));

D1 — profit of previous years revealed in the accounting period (the sum of lines 8009, 8010, 8011, 8012 f.2 minus tax on profit 24% for 2008, 20% since 2009);

D2 — writing off of debt (line 8014 f.2 minus tax on profit 20%));

D3 — income from reassessment of financial investments, equity securities circulating on the stock market (other income, line 8020 f.2);

D4 — writing off of restructured penalties and fines for taxes which could be reflected in the accounts on any line of other income, including in the Other section.

Quarterly indicators are of an estimated nature and are calculated cumulatively from the beginning of the year.