COMPANY’S POSITION IN THE INDUSTRY
PJSC Rosseti South unites the distribution grid complexes of the constituent entities of the Southern Federal District of the Russian Federation (the Republic of Kalmykia, Astrakhan Region, Volgograd Region and Rostov Region) and carries out the following core activities:
- Compensated rendering of services on electricity transmission through a package of organisationally and technologically related activities, including operational and process management
- Services for connection of consumer terminals (power plants) of legal entities and individuals to the power grids of the Company
- Repair, maintenance and operation
By Order No. 208-e of the Federal Tariff Service dated 16 June 2008, the Company was included in the register of subjects of natural monopolies in the fuel and energy complex, which are subject to state regulation and control through setting tariffs for electricity transmission services and services for connection consumers to the electric power grids of the Company.
Services of Rosseti South are mainly consumed by electricity retailers, entities of the wholesale and retail electricity markets, and local grid operators.
Most of the electricity supplied to consumers within the service area of PJSC Rosseti South passes through the electric power grids of the Company.
Having the direct grid connection of electricity consumers to UNPG grids, PJSC Rosseti South signed grid assets lease agreements with the owner of the equipment of the UNPG grids (Public Joint Stock Company Federal Grid
DESIGNATION AS GUARANTEEING SUPPLIER
Since 1 January 2017, the Company has been acting as a guaranteeing supplier in the Republic of Kalmykia within the city of Elista. From 1 January 2018 through 30 September 2023, the status of a guaranteeing supplier was annually renewed under orders of the Ministry of Energy of the Russian Federation. In 2023, the guaranteeing supplier functions were exercised pursuant to Order No. 1346 of the Ministry of Energy of the Russian Federation dated 20 December 2022. Since 1 October 2023, the guaranteeing supplier functions in Elista, Republic of Kalmykia, have been transferred to JSC Chitaenergosbyt under Order No. 713 of the Ministry of Energy of the Russian Federation dated 30 August 2023.
As of 1 August 2021, by Order No. 509 of the Ministry of Energy of the Russian Federation dated 29 June 2021, due to the decision of NPP Market Council Association to revoke the status of JSC Kalmenergosbytas a wholesale electricity and capacity market entity and to exclude it from the register of wholesale market entities, the guaranteeing supplier status in the Republic of Kalmykia (except for the Elista city area) was assigned to PJSC Rosseti South. Since 1 August 2023, the guaranteeing supplier functions in the territory of the Republic of Kalmykia, except for Elista, have been extended under Order No. 564 of the Ministry of Energy of the Russian Federation dated 27 July 2023.
Thus, from 1 January to 30 September 2023, PJSC Rosseti South acted as guaranteeing supplier on the entire territory of the Republic of Kalmykia, and since 1 October
Kalmenergo, as a guaranteeing supplier, serves 59,136 consumers in the Republic of Kalmykia, excluding Elista, including:
- 4,291 consumers include legal entities, sole proprietorships and citizens engaged in commercial activities
- 54,845 consumers belonging to the Population group
The level of cash payments in the retail electricity market for 2023 was 101.8% against the target of 98.6%, overshooting the plan by 3.2%, or RUB 78.97 million.
The payment level of 101.8%, recorded above the level approved by the business plan for 2023, is attributable to the absence of charges since 1 October 2023 as the function of a guaranteeing supplier in Elista was transferred to a new guaranteeing
Expenses for the purchase of electricity on the wholesale electricity and capacity market in 2023 totalled RUB 1,344.81 million, the volume of electricity purchased was 625.52 million kWh.
Obligations to pay for purchased electricity on the wholesale electricity and capacity market were fulfilled in full, the Company has no overdue accounts payable for purchased electricity on the wholesale electricity and capacity market.
IMPACT OF EXTERNAL SANCTIONS ON THE ADJUSTMENT OF THE COMPANY’S STRATEGY
Due to the specifics of the Company’s operations, with services provided mainly to consumers in the domestic (Russian) market, the sanctions imposed by foreign countries did not have a direct and significant negative impact on the Company and its activities.