ROSSETI KUBAN IS THE LARGEST POWER GRID COMPANY IN THE KRASNODAR TERRITORY AND THE REPUBLIC OF ADYGEA.

MISSION OF ROSSETI KUBAN IS PROFIT MAKING BY LONG-TERM PROVISION OF RELIABLE, SAFE, AND ACCESSIBLE POWER SUPPLY TO CUSTOMERS ACROSS THE KRASNODAR REGION AND THE REPUBLIC OF ADYGEA BY ARRANGING THE MOST EFFICIENT MANAGEMENT OF THE DISTRIBUTION GRID, APPLYING CUTTING EDGE TECHNOLOGY AND INNOVATIONS, AND OBSERVING THE WORLD STANDARDS FOR RENDERING SERVICES AND THE BEST PRACTICE OF CORPORATE GOVERNANCE.

In the reporting year, in accordance with Federal Law No. 522-FZ dated December 27, 2018 “On Amending Certain Legislative Acts of the Russian Federation in Connection with the Development of Electric Energy (Power) Metering Systems in the Russian Federation” and the Smart Metering Development Concept of PJSC Rosseti in the retail markets, the Company developed and implemented the Smart Metering Development Program for 2020–2030.

INVESTMENTS ARE THE BASIS OF RELIABLE POWER SUPPLY AND THE MOST IMPORTANT COMPONENT OF THE COMPANY’S PERFORMANCE.

Prices (tariffs) for the Rosseti Kuban’s power transmission services and the grid connection fees are regulated by the state and set by the RPC-PTD KT orders. In the Krasnodar Territory and the Republic of Adygea, where the Company operates, prices (tariffs) are unified for each group of power consumers.

At the end of the 2019/2020 corporate year, the Company’s Corporate Governance is recognized as relevant to developed practices by the internal audit.

The Internal Control System (ICS) is a risk-based system; control procedures are developed taking into account the risks and are established in such a way as to provide reasonable assurance of effective and timely response to the emerging risk.

The Dividend Policy of Rosseti Kuban is determined by the Dividend Policy Regulation approved by the Board of Directors’ decision on January 31, 2018 (Minutes No. 297/2018 dated February 1, 2018). The Policy is available at the Company’s official website in the section About the Company / Constituent and In-house Documents.

To make sure that the Program is implemented as is right and proper, Rosseti Kuban appointed officials responsible for arranging and monitoring its fulfillment and established working groups.