Business Model

Process: Electric Power Transmission and Distribution

PJSC MOESK provides electric power transmission services to guaranteed power suppliers, utility companies and direct consumers — members of wholesale and retail electric power market under the contracts on electric power transmission services. The contract subject is performance of a complex of organizational and technical activities as required to supply electric power to end users of PJSC MOESK, which have their electrical installations connected directly to PJSC MOESK grids and to local grid operators (LGOs).

PJSC MOESK receives the electric power from the power generating companies (power plants, block stations), associated energy systems located in the nearby constituent entities of the Russian Federation, main electric grids — grids rated for 220 kV and above (PJSC Federal Grid Company of Unified Energy System or PJSC FGC of UES) and transmits this electric power to the terminal points of end users or LGOs.

In consideration of electric power transmission services, PJSC MOESK performs settlements with the power supply companies (guaranteed power suppliers, direct consumers) and grid companies (LGOs, PJSC FGC of UES) according to the electric power transmission tariffs established by the Moscow Regional Energy Committee and Moscow Region Pricing and Tariffing Committee.

In the course of electric power transmission certain power losses occur in the electric grids due to the normal electric power transmission process; the volume of losses is measured as the difference between the volume of energy received by the Company’s own grid and the volume of energy delivered to the consumers connected to the Company grids and the volume of energy transmitted from the Company’s own grids to the grids owned by LGOs. The electric power losses in the Company’s own grids are purchased by PJSC MOESK from the guaranteed power supplier under the electric power sale agreement in order to compensate for such losses.

Business Model of PJSC MIPC

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