Operating Performance of the ROSSETI Group
Financial Performance
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The ROSSETI Group is one of the world’s largest electric utilities in terms of the number of customers and the length of lines with voltages of up to 110 kV: the company maintains 2.3 million km of power transmission lines, transformer capacity of 480,000 substations is more than 751 GVA . The Group is one of Russia’s most important infrastructure companies, governmentally controlled, and the government’s agent for the management of the Russian electricity distribution grid sector. The asset portfolio of ROSSETI Group includes 43 subsidiaries and affiliates, including 16 distribution and 1 transmission grid company. The controlling shareholder of the company is the state represented by the Federal Agency for State Property Management of the Russian Federation, which owns 85.3% of the share capital. |
Capital Structure
The ROSSETI Group includes three main kinds of subsidiaries and dependent companies (SDCs) by activity type:
1. Grid Companies with Operations in the Retail Electricity (Capacity) Markets
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2. Grid Company with Operations in the Wholesale Electricity
(Capacity) Market
- FGC UES
3. Electricity retail companies and noncore assets companies
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The Strategy for Development of the Electric Grid Sector of the Russian Federation approved by Ordinance of the Government of the R ussian Federation, provides for the formation of a single electric grid management company based on JSC ROSSETI to coordinate the activities of Russian grid organizations in the areas of tariffs, technical policy, investment planning, transparent financial and economic operations, and anti-corruption policy.
Principal functions, planned to be performed by JSC ROSSETI¹:
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In accordance with the Strategy, the mission of electric grid sector is to secure a long-range reliable, efficient and affordable power supply for customers providing the most effective and required under international standards grid infrastructure, introducing electricity tariffs with affordable electricity prices for Russian economy and developing the attractiveness of the industry for investors given an adequate return on equity
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1 In accordance with the Strategy for Development of the Electric Grid Sector of the Russian Federation No.511-r.
Goals and mission of JSC ROSSETI is determined by the market participants’ expectations:
| FOR CUSTOMERS | JSC ROSSETI is striving to provide services of high quality: a reliable electricity supply and timely and transparent electricity network connection at affordable prices. |
| FOR THE REGIONS AND LOCAL GOVERNMENT AUTORITIES | JSC ROSSETI satisfies the economy’s demand for distribution capacity, acting as a reliable partner of Russian regional executive authorities in planning and carrying out regional development programs, and being a bona fide taxpayer and employer. |
| FOR STAFF | JSC ROSSETI is an efficiently organized company that has a transparent and comprehensible corporate governance system and offers opportunities for personnel to realize their full potential. |
Acting as a strategic company, JSC ROSSETI should succeed electric grid sector goals within its SDCs and set future standards for all the companies of the industry.
