Abbreviations and Terms

ASCEM — automated system for control and electricity metering.

ACS — automated control system.

APCS — automated process control system.

VL, VLI — overhead power line.

HV — high voltage (110 kV and above).

FOCL — fiber-optic communication line.

The shortfall in revenue — the shortfall in incomes of a regulated organization from providing benefits for technological connection to consumers up to 15 kW, arising from the difference in actual costs incurred in connection with the technological connection from the received preferential payment for technological connection, approved in accordance with the current legislation of the Russian Federation.

The last resort provider (default provider) — is a commercial organization, obliged in accordance with Federal Law No. 35-FZ of March 26, 2003 "Concerning the Electric Power Industry" or voluntarily assume responsibilities to conclude a contract for the sale and purchase of electricity with any consumer of electricity who has applied to this organization or with a person acting in the name and on behalf of the electricity consumer and wishing to purchase electricity.

GTPP — gas turbine power plants.

S&A — subsidiaries and affiliates of the Company or PJSC Rosseti.

FGC — Federal Grid Company.

CPL — cable power line.

Corporate year — the period from the moment of election of the personal composition of the Board of Directors and the Auditing Commission at the Annual General Meeting of Shareholders of the Company to the time of the subsequent Annual General Meeting of Shareholders of the Company.

Single pot required gross proceeds — is an economically justified amount of funds, necessary for a Company to carry out regulated activities over the estimated period of regulation, with account for the costs of paying for services of regional grid organizations, PJSC FGC UES, as well as the purchase of electricity to compensate for losses.

Single pot tariffs for electricity transmission — are the unified tariffs for electricity transmission services in the Krasnodar Territory and the Republic of Adygea, differentiated by voltage levels, for all consumers of electricity transmission services, regardless of the network of which grid organization, these consumers are connected.

PL — power line.

GRR of the region, the gross revenue requirement of the region — is an economically reasonable amount of financial resources required for network organizations that operate in the Krasnodar Territory and the Republic of Adygea for the implementation of managed electricity transmission activities during the regulation settlement period.

GRR of the Company, the gross revenue requirement of a grid Company — is an economically reasonable amount of financial resources necessary for the organization to carry out regulated activities during the settlement period of regulation without taking into account the costs of paying for the services of territorial grid organizations, PJSC FGC UES, as well as the purchase of electricity to compensate for losses.

Customer curtailment — undersupply of electricity to consumers as a result of technological disruption of the electrical network.

R & D — research and development work.

RW — research work.

LV — low voltage.

The volume of services rendered — the amount of electricity transmitted through the mechanical devices of electrical networks owned by Kubanenergo PJSC based on ownership or other grounds established by the legislation of the Russian Federation.

EDW — Experimental design work

WECM, the wholesale electricity and capacity market, the wholesale electricity market — the sphere of circulation of particular goods — electricity and power within the framework of the Unified Energy System of Russia within the boundaries of the prevailing economic space of the Russian Federation with the participation of primary producers and major buyers of electricity and capacity, as well as other individuals the status of the subject of the wholesale market and acting on the basis of the rules of the wholesale market, approved in accordance with the Federal Law of 26.03.2003, No. 35-ФЗ "On Electric Power Industry" Russian Federation.

Supply of electricity to the network — the amount of electricity accepted into the distribution network at the points of supply from the Unified National Electric Grid, Generations, and other related systems, formed according to the voltage level along with the balance of the balance sheet.

Kubanenergo PJSC, Kubanenergo OJSC, Company, Issuer, Parent Company — Public Joint Stock Company of Power Industry and Electrification of Kuban.

AR — Accounting Regulation.

Electricity net supply — the amount of electricity transmitted (supplied) through distribution networks by points of electricity supply to consumers and (or) downstream grid organizations, formed by the voltage level along with the balance of the balance sheet. Corresponds to the physical process of transmission of electricity through electrical networks.

Electricity loss:Actual (reported) loss of electricity — the difference between the amount of electricity supplied to the electricity network from other networks or electricity producers, and the amount of electricity consumed by the power receivers connected to this network, as well as transmitted to other network organizations.

Regulatory loss of electricity — estimated values of losses established by the authorized federal executive body concerning the aggregate of power transmission lines and other electric grid facilities owned by the grid organization, differentiated by the voltage levels of the networks. The cost of regulatory electricity losses is included in the size of the fee for the transmission of electricity (tariff).

Excessive (commercial) electricity losses — the difference between actual and regulatory electricity losses; The network organization pays the full amount, in the networks of which excess power losses have occurred.

Load losses of electricity — losses depending on the load in transformers and lines arising in the process of power transmission.

PS — substation.

RPA — relay protection and automation.

DEDN — districts of electrical distribution networks in branches of OJSC Kubanenergo, which unite several network sites, as well as groups: operational dispatching, mechanization, and transport, for the transport of electricity, and performing their operational management (through the head of DEDN).

RAS — Russian Accounting Standards.

REC - DPR KR — Regional Energy Commission — Department of Prices and Tariffs of Krasnodar Territory — the executive authority of Krasnodar Region in the field of state regulation of tariffs.

EN — electric networks in the branches of OJSC Kubanenergo.

Recloser — is an automatic section for network partitioning, which includes a high-voltage equipment cabinet with a vacuum switch, a control cabinet with microprocessor relay protection and automation.

Network organization, distribution network Company — an organization engaged in the transmission and/or distribution of electricity through electrical networks.

SSIW — self-supporting insulated wire.

Related Network Organization — the grid organization, which owns on the right of ownership or on other legal grounds objects of the electric grid economy directly connected technologically to the electrical networks of another grid organization (to which it is adjacent).

Media — mass media.

AV1, AVI — average voltage I (35 kV).

AV, AVII — average voltage II (1–20 kV).

The average number of employees — is the sum of the list of employees for each calendar day of the period, including holidays (non-working) and days off, divided by the number of calendar days of the period.

The list number of staff — the number of permanent, seasonal, temporary, and other employees on the organization’s lists. The list number includes those working and absent from work for various reasons, but not terminated with the organization of labor relations, receiving wages in this organization.

Technical losses — losses of electricity in lines and equipment of electrical networks caused by physical processes occurring during transmission of electricity following the technical characteristics and modes of operation of lines and equipment, taking into account the power consumption for auxiliary needs of substations.

Technical metering of electricity — metering to control energy consumption inside power plants, substations, enterprises, to calculate and analyze electric power losses in electrical networks, as well as to account for electricity consumption for own, business and production needs.

Technological violation (accident) — an unauthorized violation of normal operation in the electrical network.

TS — transformer substation.

Technological connection — technological connection of power receiving devices (power installations) of legal entities and individuals to the power grids of a Company providing electric power transmission services.

MR — maintenance and repair.

RPA Setpoint — the parameter of operation (release) of the relay or the response time (release) of the relay to which the relay is adjusted.

c.u.‑ conditional units — conditional units of electrical equipment.

Local Grid Company (LGC) — is a regional network organization — a commercial entity that owns electric grid facilities based on ownership or as otherwise established by federal laws. Based on the use of these facilities, such an organization provides electricity transmission services and provides technological connection of power receiving devices (power plants) of legal entities and individuals to the power grids in the prescribed manner. Such a Company also has the right to enter into contracts for the provision of services for the transmission of electricity through the electric grid facilities not belonging to the Unified National (All-Russian) electric power grid.

TPP — thermal power plant.

The feeder — is a power line connecting the busbars of the switchgear with the distribution and consumer electrical networks fed from these buses.

Power center — 110, 35, 6/10 kV substation bus-bars.

Electricity — electrical energy.

EN — electrical networks.

EBITDA (Earnings before Interest, Taxes, Depreciation, and Amortization)‑ is an indicator equal to the amount of profit before taxes, depreciation expenses and interest on loans.

IEC-61850 — is the standard of the International Electrotechnical Commission "Communication Networks and Systems at Substations", describing data flow formats, types of information, rules for describing power facility elements and a set of rules for organizing an event-based data transfer protocol.

Pry-Cam — is a type of partial discharge monitoring system used for online diagnostics of the state of power grids and the implementation of operational maintenance.

SCADA (Supervisory Control And Data Acquisition — Dispatch Control and Data Acquisition) — is a software package designed to develop or provide real-time systems for collecting, processing, displaying and archiving information about a monitoring or management object.