CONSOLIDATION OF POWER GRID ASSETS

In pursuance of the Federal Headquarters’ instructions on the consolidation of grid assets of LGOs that will not meet the criteria for classifying owners of power grid facilities as LGOs, road maps were developed for picking up grid assets of LGOs that are losing their status, LGOs that have lost their status since 2023, and LGOs that retain their status, approved by Order No. 364 of PJSC Rosseti South dated 29 June 2023. Based on the roadmaps, consolidation proposals were sent to all LGOs, as well as to their owners and owners of power grid equipment. Meetings were also held with the concerned LCOs.

Based on the outcomes of the work done, a power grid property lease agreement was concluded with LLC NVSK and a power grid property gratuitous use agreement – with JSC Astrakhan Airport. Astrakhanenergo, a branch of PJSC Rosseti South, planned measures to consolidate power grid assets of LLC Energo Protection.

Volgogradenergo, a branch of PJSC Rosseti South, is considering a project to consolidate the power grid property of LLC Volzhsky Methanol by entering into a lease agreement.

Rostovenergo, a branch of PJSC Rosseti South, entered into a lease agreement for power grid property with LLC TOK, and the necessary measures are underway for further buyout of the said power grid property.

There are no third-party LGOs in the territory of the Republic of Kalmykia (the territory of Kalmenergo, a branch of PJSC Rosseti South), as well as LGOs that operated in previous regulation periods and were stripped of their status in 2023.

Implementation of agreements on consolidation of power grid facilities with executive authorities of constituent entities of the Russian Federation and other power industry entities.

In order to consolidate state (municipal) owned power grid assets, branches of PJSC Rosseti South submitted proposals for the transfer of power grid facilities to PJSC Rosseti South for use to the heads of municipalities.

In 2023, the Company continued to acquire ownerless power grid property. Efforts According to the decisions of the Minutes of the All-Russian Meeting (clauses 13.2, 15.2, 15.3, 18) No. NSh-161pr dated 20 April 2023, and in accordance with clause 1.2 of the Minutes of the meeting of PJSC Rosseti on the consolidation of ownerless power grid facilities, including the application of clause 5 of Article 225 of the Civil Code of the Russian Federation No. KDV/301/343 dated 29 May 2023. to identify ownerless power grid facilities were stepped up through co-operation with local authorities. Branches communicate with local authorities on a regular basis, and hold joint meetings when necessary.

When identified, the Company had the ownerless facilities recognised in court, including 77 ownerless facilities in the Republic of Kalmykia, and put them on its books.

Rostovenergo, a branch of PJSC Rosseti South, took part in an auction on the RTS-Tender platform for the right to conclude a sale and purchase agreement for movable municipal property of the Bokovsky District Municipality, which resulted in the conclusion of the a sale and purchase agreement for municipal electric grid property.

Interaction with owners or other legal owners of power grid facilities that do not meet the criteria for classifying owners of power grid facilities as LGOs approved by Resolution of the Government of the Russian Federation No. 184 dated 28 February 2015.

Guided by the objectives of improving the reliability of electricity supply to consumers and enhancing the controllability of the power grid complex, PJSC Rosseti South regularly engages with owners of power grid facilities that do not meet the criteria for classifying owners of power grid facilities as local grid operators to consolidate power grid assets on the basis of PJSC Rosseti South. Thus, in 2023, there was regular interaction with owners or other legal owners of power grid facilities that do not or will not meet the criteria for classifying the owners of power grid facilities as local grid operators in terms of transferring the functions of power grid asset management.

Based on requests received by the branches, the Commission for the Consolidation of Power Grid Assets of PJSC Rosseti South made decisions on the expediency of consolidating power grid assets owned by legal entities and individuals.

Measures to consider the expediency / inexpediency of consolidating electric grid facilities were carried out as soon as relevant requests were received from garden non-commercial associations and dacha non-commercial associations, individuals, in accordance with the procedure specified in the Regulations on the Activities of the Commission for the Consolidation of Power Grid Assets and the Procedure for Acquiring Power Grid Assets approved by Order No. 545 of PJSC Rosseti South dated 3 October 2022 (as amended by Order No. 618 dated 7 November 2022).

MONITORING THE SCOPE OF CONSOLIDATION OF POWER GRID ASSETS

Name of IDGCs/DGCs (S&As of IDGC)

2021

2022

2023

Power grid assets consolidated for the period

Power grid assets consolidated for the period

Power grid assets consolidated for the period

MVA

km

c.u.

MVA

km

c.u.

MVA

km

c.u.

1

2

3

4

5

6

7

8

9

10

Total PJSC Rosseti South

286

392.02

4,287.40

288.37

457.93

4,380.16

318.46

514.41

5,525.65

Grid facilities acquiredThe entire actual volume of power grid assets acquired during the calendar period.

6.50

3.76

31.20

80

0

121.7

0.06

0

2.30

Grid facilities leasedThe entire actual volume of leased power grid assets at the end of the period (i.e., all ongoing agreements, including previously concluded ones, number of ongoing transactions at the end of the period).

208.80

82.60

2,041

128.82

82.50

1,919.23

260.10

308.47

4,431.11

Other (permanent rights of ownership and use)All actual acquisition of property during the calendar period.

5.50

54.50

179.80

4.74

100.24

219

12.010

87.64

299.86

Other (temporary rights of ownership and use)All ongoing agreements in force at the end of the period, including previously concluded agreements.

65.20

251.20

2,035.40

74.82

275.19

2,120.23

46.29

118.30

792.38