Strategy of the company

Key terms and parameters of the strategic development of Rosseti Centre and the distribution grid complex as a whole are defined by the Energy Strategy of Russia for the period up to 2030, approved by the Government of the Russian Federation Executive Order of November 13, 2009 # 1715-r (“Energy Strategy - 2030”).

In April 2013 the Government of the Russian Federation (Resolution of April 3, 2013 # 511-r) In April 2013 the Government of the Russian Federation (Resolution of April 3, 2013 # 511 -r) also approved the development strategy of the electric grid complex of the Russian Federation (hereinafter – the Power Grid Strategy), developed for the period up to 2030. The Strategy covers the main activities of the electric grid complex - transmission and distribution of electric energy and is directly connected with aspects of related activities (generation and retail of electric energy) in Russia.

The Power Grid Strategy especially focuses on the activities of OJSC Russian Grids and its affiliated organizations, controlling about 70 percent of distribution and 90 percent of transmission grids in Russia.

In December 2019, the new strategy of Rosseti’s Group of Companies was also approved, which defines the goals and directions of development until 2030.

A key change in the activities of Rosseti’s Group of Companies is the transition to a business model of modern innovative infrastructure. Among the main strategic priorities it identifies ensuring further improvement of the efficiency of current activities aimed at developing the industry, ensuring reliability, quality and access to infrastructure in the new digital environment. Particular attention is paid to balancing the interests of all parties, including the state, consumers, shareholders, investors, as well as the development of new business areas.

The main purpose (mission) of the electric grid complex in the Power Grid Strategy is defined as long-term provision of reliable, high-quality and affordable energy to consumers in the Russian Federation by providing the most effective and appropriate international standards for grid infrastructure at tariffs for electric power transmission, providing an acceptable level of cost for electricity for the Russian economy and investment attractiveness of the industry through an adequate return on capital.

The Power Grid Strategy includes the following targets for the electric grid complex:

Improving the reliability and quality of power supply to a level matching the request of consumers.
Increasing safety of power supply, including the reduction of the total number of accidents, including unrecorded ones.
Reducing free power transfer zones.
Improving the efficiency of the electric grid complex, including:

increasing capacity utilization (as percentage of installed capacity of transformers in all voltage levels less compulsory redundancy);
reduction of specific investment costs;
decreasing operating expenses;
reduction of losses;
providing for competitive tariffs for business (growth as parameters of the socio-economic development of the Russian Federation for the corresponding period and a reduction in the share of grids in the final tariff);
reduction of cross-subsidization in the grid tariff;
decreasing the number of organizations that do not meet the requirements established for a qualified grid company, including technical reserve provision to eliminate failures and staff skills.