PROCUREMENT ACTIVITIES

GRI 2-25, 2-26

STATUTORY REGULATION OF PROCUREMENT ACTIVITIES

Unified Procurement Standard of PJSC Rosseti (Regulations on Procurement)

Since 9 November 2022 – by the Uniform Procurement Standard of PJSC Rosseti (Procurement Regulations) of PJSC Rosseti South approved by the Board of Directors of the Company (Minutes No. 503/2022 dated 11 November 2022), since 2 February 2023 – by the Uniform Procurement Standard of PJSC Rosseti (Procurement Regulations) of PJSC Rosseti South approved by the Board of Directors of the Company (Minutes No. 512/2023 dated 2 February 2023), which establishes the procedure for the procurement of goods, work and services regardless of their cost

Regulations of the interaction of Rosseti South’s business units during scheduled procurement of goods, works and services of the Company

The Regulations on Interaction of Business Units of PJSC Rosseti South for Regulated Procurement of Goods, Work and Services of the Company (Company Order No. 858 dated 30 December 2015) were enacted on 30 December 2015, and the Regulations on Interaction of Business Units of PJSC Rosseti South for Regulated Procurement of Goods, Work and Services of the Company (Company Order No. 684 dated 5 December 2022) were enacted on 5 December 2022 and define the procedure for interaction between business units of the executive office and branches of the Company when planning and conducting procurement, reporting on procurement results.

Regulation on the work of the Central Tender Commission of PJSC Rosseti South

The Regulations on the Operation of the Standing Procurement Commission of PJSC Rosseti South (Company Order No. 314 dated 27 May 2021) came into effect on 27 May 2021, and the Regulations on the Operation of the Standing Procurement Commission of PJSC Rosseti South (Company Order No. 473 dated 24 August 2022) came into effect on 24 August 2022, which were developed to define the functions, tasks, procedure for preparation and holding meetings of the Central Tender Commission of the Company

Regulation on the work of the standing procurement commission of PJSC Rosseti South

The Regulations on the Operation of the Standing Procurement Commission of PJSC Rosseti South (Company Order No. 311 dated 27 May 2021) were enacted as of 27 May 2021 to define the functions, tasks, preparation and holding of meetings of the standing procurement commission of the Company.

For efficient interaction with suppliers, the Company uses the electronic trading platform www.roseltorg.ru, the functionality of which makes it possible to expand the range of suppliers involved in procurement, as well as provides a competitive environment, thereby contributing to the efficiency of the Company’s procurement activities.

Additional tools for interacting with suppliers include the portal of the Unified Information System for Procurement and the Suppliers section of the corporate website of PJSC Rosseti South www.rosseti-yug.ru. The Company publishes an up-to-date procurement plan (planned to be announced, ongoing and completed procurements) on these Internet sites with an option of automatic transfer to www.zakupki.gov.ru for prompt access to up-to-date information.

For more details on the methods of procurement procedures, please see Appendix No. 7 on the Company’s website.

VOLUME OF PROCUREMENTS OF ROSSETI SOUTH IN 2023

The Company focuses its efforts on improving the information transparency and access of participants to procurements, including mainly electronic procurement procedures. A share of competitive procurement via the digital trading platforms amounted to 99.75%. There are no suppliers or contractors registered outside the Russian Federation.

Openness of procurement procedures, %

2022

2023

Change 2023/2022

Share of open competitive procurement procedures, as well as e-commerce procedures (using electronic trading platforms) in the total volume of procurement

Savings achieved

98.30

1.70

67.44

3.60

0.69

2.11

Share of purchases from small and medium-sized enterprises, as well as purchases in which small and medium-sized enterprises are engaged as subcontractors

66.48

72.38

0.86

Distribution of procurement by activities, %
Distribution of procurement by activities, %

Distribution by procurement method, %
Distribution by procurement method, %

SAVINGS ACHIEVED

Procurements were made and contracts were concluded with suppliers classified as SMEs in the amount of RUB 3,292.63 million, including VAT, which is 72.38% of the total volume of procurement procedures, of which special procurements (where only SMEs could be participants in the procurement) in the amount of RUB 2,558.28 million, including VAT, which is 31.65% of the total volume of procurement procedures.

In accordance with the requirements of the Government Resolution, quotas for purchases by specific customers from SMEs were approved at the level of 20% (25% for special purchases). The Company regularly exceeds the plan of purchases from SMEs.

Share of SME procurements, %
Share of SME procurements, %

Share of procurements from SME only, %
Share of procurements from SME only, %

Volume of SME procurement, RUB mln
Volume of SME procurement, RUB mln

Volume of procurements from SME only, RUB mln
Volume of procurements from SME only, RUB mln