CHIEF COMPETITORS OF THE COMPANY

The Company’s competitors are relatively small grid companies in the territory of its presence. It is important to note that smaller competitors are at the local level, are tied to certain municipal districts, and have a little impact on the issuer’s business. The likely major competitors are JSC Donenergo in the Rostov Region, MUE Astrakhan Gorelektroset in the Astrakhan Region, CJSC Volgogradoblelectro in the Volgograd Region due to their coverage area and a single rate of grid connection tariffs. However, due to the existing division of territorial responsibility of grid organisations in terms of providing services, including grid connection of consumers, the above-mentioned companies have extremely limited market power.

In addition, to measure the attractiveness of investing in shares of PJSC Rosseti South in the stock market, the Company is usually compared with other Interregional distribution grid companies, although the legal entities are not competitors and, moreover, are subsidiaries of PJSC Rosseti.