Energy Saving and Increase of Energy Efficiency

In the reporting year, all work related to energy conservation and increasing energy efficiency was carried out by the Company in accordance with:

Federal law No. 261-FZ of 23.11.2009, On Energy Conservation and Increasing Energy Efficiency and Amending Certain Legislative Acts of the Russian Federation,
Decree of the Government of the Russian Federation No. 977 of 01.12.2009, On the Investment Programs of Subjects of the Electric Power Industry (current revision),
Order No. 5/2011 of REC DPT KT of 31.03.2011, On Approval of Requirements for Programs in the Field of Energy Conservation and Energy Efficiency of Organizations Engaged in Regulated Activities in the Krasnodar Territory,
Law No. 1912-KZ of the Krasnodar Territory of 03.03.2010, On Energy Saving and Energy Efficiency Improvements in the Krasnodar Territory,
Program on Energy Saving and Increasing Energy Efficiency of PJSC Kubanenergo in 2014-2019 (the “Program”) approved by Decision No. 178/2013 of the Board of Directors of PJSC Kubanenergo of 23.09.2014 (Minutes No. 197/2014) as part of revised business plan of the Company.

In order to ensure the implementation of the Program, PJSC Kubanenergo appointed persons in charge of the organization and supervision of its execution and established special working groups.

PJSC Kubanenergo collected certificates of conformity to requirements of International Standard ISO 50001:2011 (GOST R ISO 50001-2012) No. 15.1552.026 dated 28.12.2015.

In 2015, the Company conducted training on the following topics

Subject of training	Number of trained persons
Energy Saving and Energy Efficiency. International Standard ISO 50001:2011 within the training implementation for utilities technical and engineering employees as part of the course School for Heads of Power Distribution Grids.	11
Energy Saving and Energy Efficiency. International Standard ISO 50001:2011 within the training implementation for utilities technical and engineering employees as part of the course School for Specialists of Development and Rendering of Services.	24

The Program target indicators include power losses during power transmission and distribution, energy consumption for production and economic needs of the Company, as well as the provision of the electrical equipment of the Company and consumers connected to its power grids with advanced electricity metering devices.

Planned and Actual Target Values of the Program for 2015

Indicator	Units of Measurement	2015
Indicator	Units of Measurement	Plan	Actual
Loss of power, including:	mln kWh	2,752.11	2,835.68
Loss of power, including:	% of power supply to the grid	13.14	12.87
consumption for own needs of substations	mln kWh	17.12	16.35
Resources consumption for economic needs, including by resource types:	RUB mln	352.24	448.55
fuel and energy, including:	tons of oil equivalent	12.2	16.0
fuel and energy, including:	RUB mln	348.69	441.96
electric power	mln kWh	28.03	35.89
electric power	RUB mln	75.14	108.86
heat	Gcal	4,760.46	5,851.27
heat	RUB mln	11.22	11.62
gas	ths m3	146.80	173.93
gas	RUB mln	1.31	1.71
other (diesel, kerosene, gasoline, etc.).	ths tons of fuel equivalent	7.96	10.64
other (diesel, kerosene, gasoline, etc.).	RUB mln	261.02	319.77
hot water supply	ths m3	0.25	1.48
	Gcal	1.42	21.38
	RUB mln	0.42	0.08
cold water supply	ths m3	83.68	185.04
cold water supply	RUB mln	3.13	6.51
Equipment with up-to-date electric power metering devices at the wholesale market	%	28.97	29.22

Implementation of Program Measures in the Reporting Year

	Planned Impact		Actual Impact
	RUB mln	mln kWh	RUB mln	mln kWh
Measures with direct impacts	113.65	35.07	214.94	51.76
Measures with related impacts - Total *	223.52	61.52	70.73	17.54
including:
implementation of the program for technical re-equipment, renovation and new construction	8.32	3.72	10.37	4.58
implementation of the program for the development of electric energy metering and control devices	215.20	57.80	60.36	12.96
Total	337.17	96.59	285.67	69.30

In the reporting year, the costs of measures with direct impacts were RUB 107.26 mln.

In order to reduce the consumption of resources for economic needs the Company undertakes the following measures:

regulation of heating operations in accordance with the temperature regime;
introduction of energy-saving lamps;
replacement of mercury street lamps with LED and sodium lighting;
replacement of windows with plastic or wooden multi-chamber glass units;
replacement of not working plumbing equipment;
replacement of mixer units;
replacement of water supply pipes.

The plan of the implementation of measures to reduce the consumption of resources for economic needs of the Company in 2015 was successfully completed

Planned Impact			Actual Impact
ths t of fuel equivalent	ths l of cold water	RUB mln	ths t of fuel equivalent	ths l of cold water	RUB mln
0.017	3.0	0.269	0.092	218.0	1.821

* Failure to fulfill the plan of the implementation of measures with related impacts was due to the pre-project inspection conducted by the Company prior to conclude energy service agreements.

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