The Board’s Progress Report on the Company’s Key Focus Areas
To pursue the Development Strategy of the Power Grid Complex of the Russian Federation as well as other strategies and programmes, the Company herein states its priorities.
| Sl.No. | Priority | Basis | Baselines for 2022 targets | Progress in 2022 | Plans for 2023 | |||
|---|---|---|---|---|---|---|---|---|
| Plan | Actual | Reasons of non-compliance with the plan | ||||||
| 1 | Ensuring the established level of reliability and quality of services provided as statutory required | Decision of the Board of Directors dated 18 November 2011, Minutes No. 121/2011 | Order No. 62/2017-e of the Regional Energy Commission – Department of Prices and Tariffs of the Krasnodar Territory dated 27 December 2017 “On Setting Tariffs for Providers of Electricity Transmission Services” | Approved values: grid connection quality level indicator (IGC) – 1.0 (with allowable deviation – more than 0.75 and less than or equal to 1.25) System average interruption duration index (ISAIDI) – not more than 4.3143 h (with allowable deviation – not more than 5.6086 h) System average interruption frequency index (ISAIFI) — not more than 0.9950 interruptions (with allowable deviation — not more than 1.2935 interruptions) | Achieved values:
| Indicators for reliability and quality of services provided are delivered | Approved values:
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| 2 | Providing accessible energy infrastructure and good quality of grid connection to the Company’s grids | Decision of the Board of Directors dated 12 September 2014, Minutes No. 196/2014 | Process Regulations RP 00104604-ISM 006-2020 “Grid Connection” Efficiency is assessed by the quality of review of grid connection applications as specified in para. 2.9 of the Standard Procedure for Calculating and Evaluating the Achievement of Key Performance Indicators of the Individual Executive Bodies of Subsidiaries and Affiliates of Rosseti, PJSC engaged in electricity transmission and grid connection activities, approved by Order No. 300 of Rosseti, PJSC dated 15 May 2020, subject to the procedure for calculating and evaluating the KPI performance of the General Director of Rosseti Kuban, PJSC approved by Company Order No. 598-od dated 9 October 2020 as well as by indicator “Drafting and issuing the certificate of grid connection and other related documents to applicants with a maximum capacity of up to 150 kW consumer terminals”, established by para. 3.1.1.of the Grid Connection Target Model approved by Order No. 147-r of the Government of the Russian Federation dated 31 January 2017 | The planned value of the quality indicator for grid connection application review is ≤1.1 | 1.001 | 1.001 | To achieve the quality of review of grid connection applications of 1.1 maximum (in accordance with para. 2.9 the Standard Procedure for Calculating and Evaluating the Achievement of Key Performance Indicators of the Individual Executive Bodies of Subsidiaries and Affiliates of Rosseti, PJSC engaged in electricity transmission and grid connection activities, approved by Order No. 300 of Rosseti, PJSC dated 15 May 2020, subject to the procedure for calculating and evaluating the KPI performance of the General Director of Rosseti Kuban, PJSC approved by Company Order No. 598-od dated 9 October 2020 | |
| 3 | Planning the development of Company’s distribution power grid complex | Decision of the Board of Directors dated 5 September 2011, Minutes No. 116/2011 | Rosseti's Order No. 4 dated 10 January 2019 | To be directly involved in the development of prospective development of the power grid sector in the Krasnodar Territory and the Republic of Adygeya | Was directly involved in the development of prospective development of the power grid sector in the Krasnodar Territory and the Republic of Adygeya To be directly involved in the development of the roadmap of development of electric power systems of Russia as it pertains to the development of the Kuban energy system | To be directly involved in the development of the roadmap of development of electric power systems of Russia as it pertains to the development of the Kuban energy system for the next regulatory period | ||
| 4 | Improving the counter-terrorism and anti-sabotage protection of the Company’s grid facilities | Decisions of the Board of Directors dated 5 August 2010, Minutes No. 94/2010; dated 29 January 2015, Minutes No. 202/2015 | In order to ensure the safety of the Company’s facilities, the following measures are to be taken: to observe Rosseti’s Order No. 18 dated 22 January 2020 on the approval of counter-terrorism procedures for facilities of Rosseti S&As as well as the Company’s counter-terrorism regulations to keep the security equipment of the Company’s facilities up and running to conduct random inspections of how officers of private security firms keep guard at the Company’s facilities to give weekly briefing to dispatchers and personnel of off-site teams on duty on how to act if signs of a terrorist nature are detected at the Company’s facilities to train staff of the Company’s branches on how they should act when unauthorised persons and objects are detected at power facilities to update plans of the Company’s emergency-response cooperation with law enforcers in the Krasnodar Territory and the Republic of Adygeya; to develop and coordinate appropriate cooperation procedures to equip the following stations with security engineering means: Boiko-Ponura substation, 110 kV Gazoapparat substation, 110 kV Kommunar substation, 110 kV Lebedi substation, 110 kV Albashi substation, and 110 kV Pereyaslovskaya substation to take measures to ensure safety of the Company’s power facilities during the 2022 Volleyball World | Except for the 2022 World Volleyball Championship, which was cancelled in the Russian Federation because of political reasons, all social and political events in the Krasnodar Territory were performed during the reporting year. The timing of equipment with security engineering means was adjusted to align with the amended investment programme. Thus, 110 kV Gazoapparat substation and 110 kV Albashi substation were equipped with security engineering means. | The plan was delivered | – | In order to ensure the safety of the Company’s facilities, the following measures are to be taken:
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| 5 | Improving the Internal Control and Risk Management System, promoting the internal audit function | Decision of the Board of Directors dated 12 September 2014, Minutes No. 196/2014 | Implementation of the plan for maintaining efficiency and developing the Company’s internal control and risk management system for 2021–2023 approved by resolution of the Board of Directors of Rosseti Kuban, PJSC (Minutes No. 433/202 dated 24 May 2021) for 2022 | Activities of the Plan planned for 2021–2022 | The plan for 2022 was delivered | Implementation of measures in accordance with the Plan for maintaining efficiency and developing the Internal Control and Risk Management System of Rosseti Kuban, PJSC approved by decision of the Board of Directors of Rosseti Kuban, PJSC (Minutes No. 517/2023 dated 18 April 2023) | The main ICS and RMS objectives for 2023 are as follows:
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| 6 | Innovative development while overseeing the delivery of the Company's current innovation development programme | Decision of the Board of Directors dated 30 March 2021, Minutes No. 426/2021 | Board of Directors Decision No. 450/2021 dated 13 October 2021 | IR&D “R&D Cost Indicator” – 0.15% of planned own revenues IINTEGRATION “Innovative Product (Goods, Works, Services) Procurement Indicator” – 4.6% of planned utilisation of the investment programme | IR&D “R&D Cost Indicator” – 0.21% of planned own revenues, 140% of the plan IINTEGRATION “Innovative Product (Goods, Works, Services) Procurement Indicator” – 3.5% of actual utilisation of the investment programme, 76% of the plan | The reason for the under-achievement of IINTEGRATION is the 34% increase (of the plan) in the utilisation of the investment programme due to the grid connection | IR&D “R&D Cost Indicator” – 0.15% of planned own revenues IINTEGRATION “Innovative Product (Goods, Works, Services) Procurement Indicator” – 4.8% of planned utilisation of the investment programme | |