Kubanenergo PJSC Market Power

The primary mission of Kubanenergo PJSC — is to take a profit in the conditions of long-term provision of reliable, high-quality and affordable power supply to consumers in the Krasnodar Territory and the Republic of Adygea by organizing the most efficient management of the distribution network infrastructure on advanced technologies and innovations based on international standards for quality of services and best practice corporate governance.

Kubanenergo PJSC provides a transmission and distribution of electricity to consumers through the electric power networks 110 kV and lower between residential areas, to the rural settlements, separate cities and regional centers of the Krasnodar Territory (including the City of Sochi) and the Republic of Adygea.

The whole service area of Kubanenergo PJSC in Krasnodar Region and the Republic of Adygea has 83.3 thousand square km and a population of more than 6 million people.

The principal purpose of the Company is to provide reliable and stable energy supply to consumers of this region and to meet the growing needs of the regional economy in electricity.

Kubanenergo PJSC is the largest taxpayer, which takes an active part in the social and economic life of the region, ensuring jobs and employment for the supplier plants from related industries, and bringing about various social programs and conducting charity events.

Kubanenergo PJSC is a public Company, which shares were admitted to trading on the Russian stock exchange — Moscow Exchange PJSC.

The Company conducts its main activity in the conditions of a natural monopoly regulated by the state in terms of:

  • tariffication for electricity transmission services and payments for technological connection of power receivers of consumers to the electrical network of the Company;
  • ensuring the open, non-discriminatory access of consumers to the specified services of the Company on equal terms.

Kubanenergo PJSC — is the largest power grid Company in the Krasnodar Territory and the Republic of Adygea. The Company share in the regional market for electricity transmission services (from the necessary gross revenue of the region) amounted to 75.5% in 2018. The high rates of reconstruction and renewal of power grid facilities of the Company, the same as dynamic growth of technological connection volumes, let to conclude that the Company will retain a dominant position in the regional market for electricity transmission services in the future.

Key characteristics of the Company in 2018
The total length of power lines 91.0 thousand km
The maximum allowable design capacity of the power systemOnly for 110 kV substations. 7,464.7 MBA
The load level of the design capacity of the power system in 2018. 4,918 MVA (65.88% of the maximum capacity)
incomplete loading of design capacity due to the need for spare capacity (back up) in case of emergency shutdown or scheduled maintenance
The total number of electricity metering points of consumers connected to the power grids of Kubanenergo PJSC under contractual electricity transmission 1,173,955
Grid branches 11
The Company’s share in the regional market for electricity transmission services (based on the required gross revenues of the region) in 2016–2018, accounted for, in %
2016 2017 2018
Share of Kubanenergo PJSC 73.9 73.9 75.5

The increase in the share of Kubanenergo PJSC is driven by the growth of the IGR for the maintenance of the electrical networks of Kubanenergo PJSC and the consolidation of power grid assets.

The following companies are among the largest companies carrying out similar activities in the Krasnodar Territory and the Republic of Adygea: JSC Independent Energy Service Company of Krasnodar region — NESK-Electricity Network, JSC Oboronenergo, JSC Russian Railways, JSC Neftegaztekhniya-Energy.

The main production assets of the Company in 2015–2018 at the end of the reporting year
Asset type Unit of measure 2015 2016 2017 2018
Substations number 23,223 23,568 23,767 23,805
Installed capacity (total), including: MegaVolt-Amper (MVA) 14,089.22 14,273.59 14,502.54 14,833.14
35–110 kV Substation number 715 716 715 716
MegaVolt-Amper (MVA) 9,432.7 9,519.1 9,696.63 9,924.07
Transformer substations, distribution transformer substations 6–10 (35) /0.4 kV number 22,508 22,852 23,052 23,089
MegaVolt-Amper (MVA) 4,656.516 4,754.491 4,819.34 4,909.07
The length of the overhead transmission line (OTL) on the highway (total), including: km 86,003.2 86,169.4 86,545 86,480.71
OTL 220 kV and above km 76.1 76.1 76.1 76.1
OTL 110–150 kV km 4,962.8 4,908.3 4,907.21 4,924.34
OTL 35 kV km 6,932.5 6,833.7 6,833.85 6,819.25
OTL 6–10 kV km 32,556.276 32,621.765 32,710.729 32,382.92
OTL 0.4 kV km 41,475.550 41,729.512 42,017.11 42,278.11
The length of cable lines (CL) (in total), including: km 2,217.1 2,279.9 2,349.954 2,390.5
CL 110 кВ km 78.75 81.05 93.35 93.35
CL 35 kV km 0.46 0.944 1.33 3.05
CL 6–10 kV km 1,663.414 1,722.563 1,777.95 1,813.54
CL 0.4 kV km 473.429 475.316 477.32 480.56