Glossary and Abbreviations

Anticorruption monitoring	Anticorruption monitoring consists in controlling the Company’s actions pertaining to fighting against corruption. The monitoring is performed to provide for the efficiency assessment of said actions by way of monitoring the results of actions involving the prevention of corruption factors and corruption events. The monitoring includes the analysis and assessment of data obtained, and the development of forecasts for future conditions and development trends.
Stakeholders relations	Stakeholders relations is a process that helps the Company to understand the stakeholders’ expectations and concerns, involving them in the Company activities and decision-making procedures, taking into account their concerns.
Dialogue with stakeholders	A dialogue with stakeholders is an organized interactive interaction of the Company with its stakeholders, performed voluntary in order to update the interests and the motives of the parties involved.
The Unified Energy System of Russia (UES of Russia)	The UES of Russia is an aggregate of production and other energy facilities unified by the production (including combined generation of electric and heat energy) and transmission of electric power in conditions of centralized operating control.
The Unified National (all-Russian) Electric Grid (UNEG)	The UNEG is the main part of the Russian UES, comprising a set of electric grids and other electric power facilities that provide for the stable supply of electric power to consumers and for the functioning of wholesale electric power market, and for the parallel operation of the Russian UES with the power systems of other countries.
A stakeholder	In a broad sense, a stakeholder is a group of physical or legal persons capable of exercising influence on the Company operations, while being dependent on said operations. In a strict sense, stakeholders are the federal and local authorities, commercial companies, public and non-government organizations, whose positions and actions in respect of the Company are expressed publicly, being intended to protect socially-significant and group interests.
Innovative development	The innovative development consists in improving the reliability, quality and efficiency of consumer power supply by way of modernization of electric grids of the Russian UES based on innovative technologies, transforming them into the smart (active-adaptive) nucleus of the industry’s infrastructure.
Intellectual (smart) grids	The intellectual grids form a set of electric power transmission lines, switchgear equipment, protection and automation devices and information, process and control systems that provide for the adaptive real-time response of the generation and the grids to different violations of preset parameters, and for the forecasting and prevention of bottlenecks and critical conditions.
Key Performance Indicator (KPI)	A Key Performance Indicator (KPI) is an integrated indicator of performance of a company, a company department, or a company official, reflecting the goals for the period set for a company, a company department or an official.
The Company	Federal Grid Company
Sustainability Context	A company’s understanding of sustainable development, its characteristics and goals at the industry, local, regional and/or global scale and the company’s impact in corresponding geographical contexts, as well as the influence of the main sustainability issues on the company’s long-term strategy, risks and opportunities.
Corporate social responsibility, (CSR)	A periodically updated sum of a company obligations lying in line with the company’s operation specifics, which are developed voluntary in a joint effort with the key stakeholders, said obligations being intended to implement the internal and external social programs assisting the company’s development (production growth, service quality improvement, corporate brands development), and the improvement of the company’s standing and image, establishing the corporate identity and widening the constructive relations with the stakeholders.
Corporate social policy	A policy implemented on the territory of the Company operations in the interests of the Company employees and of local communities.
Corporate stability	An approach to the Company’s business based on social responsibility values, and taking into account and preventing non-financial risks.
Corruption	Bribery, powers abuse, corrupt business practices, or any other illegal use by the employees of their position contrary to the Company interests and for the purpose of obtaining profit in the form of money, values, property or other property-related services, or other property rights for themselves or for any third parties, or any illegal provision of such profit to an employee by other physical persons, and the performance of the above actions on behalf or in the interests of a legal person.
A conflict of interests	A situation where a personal interest (direct or indirect) of the Company employee affects or is likely to affect a proper performance by the employee of his/her employment duties, with the situation resulting or probably resulting in a conflict between the personal interests of the Company employee and the lawful interests of the Company, with such conflict likely resulting in causing damage to the Company interests
Reliability of power supply	An uninterrupted supply of power to all electric power consumers in volumes and of the quality required.
Autumn and Winter Period (AWP) of Maximal Loads	A period of maximal consumption of electric and thermal power at low temperature of atmospheric air.
JSC FGC UES	An open joint-stock company Federal Grid Company of the Unified Energy System
JSC GSS UNEG	An open joint-stock Glavsetservis UNEG, a subsidiary of Federal Grid Company
JSC ESS UNEG	An open joint-stock company Elektrosetservis UNEG, a subsidiary of Federal Grid Company
JSC MGTES	An open joint-stock company Mobile Gas-Turbine Electric Stations, a subsidiary of FGC UES
JSC UES CMEC	An open joint-stock company UES Construction Management and Engineering Center, a subsidiary of Federal Grid Company
Sustainable Development Agenda	A list of issues, contexts and topics recognized by the Company and the stakeholders as pressing in the long run.
Last Mile Mechanism	A lease agreement, concluded by and between Federal Grid Company and a distribution grid company operating on the territory of a subject of the Russian Federation (with the agreement subject being a short length of 220 kV grid).
Social or non-financial reporting	Identification, assessment, control and publication of information the actual contribution of the Company in the development of the society, the country, or the region, prepared using the international standards of non-financial reporting and the best practices.
Power supply reliability control	A set of control actions and mechanisms pertaining to the organization, control and improvement of the processes of operation, on-line control, repair and renovation of the UNEG facilities, and the training of employees on the above.
Sustainable development	A sustainable development is a development that corresponds to the needs of today without sacrificing the future generations’ abilities to satisfy their needs..

ERW – emergency and recovery works;

JSC-energo – an open joint-stock energy and electrification company;

ASCMEE – automated system of commercial metering of electric energy;

AOCS – automatic operations control system;

APEC – Asia-Pacific Economic Cooperation; CB – capacitor bank;

HVL – high voltage line;

ESPO – Eastern Siberia – Pacific Ocean Oil Pipeline;

SDC – subsidiary dependent company;

ACID – Anticorruption Action Implementation Directorate;

FGC EB – Executive Body of Federal Grid Company;

IEAAGS – Intellectual Electric Active-Adaptive Grid System;

CSTC – Coordinating Scientific and Technical Council;

EETL – electric energy transmission line;

IDGC – Interregional Distribution Grid Company;

BGC – a bulk grid company;

MPTL – main power transmission networks;

RAD – research and advanced development;

WGC – wholesale generating company;

OS– outdoor switchgear;

WMEPC – a wholesale market for electric power and capacity;

OPC – operations process control;

ECA – emergency control automatics;

MPTLF – main power transmission lines facility;

SS - substation;

RPEA – Relay Protection and Emergency Automatics;

SO UES – a joint-stock company System Operator of the Unified Energy System;

RPSC – reactive power static capacitor;

STC – static thyristor capacitor;

SaNPiN – sanitary norms and regulations;

SSHHPP – Sayano-Shushenskaya HPP;

TGC – territorial generating company;

TM - telemechanics;

PSD – power system disturbance;

SESR TP – Smart Energy System of Russia Technological Platform;

MR – maintenance and repair;

TCHD –trichlordiphenyl;

CTC – Central Tender Commission;

TP – target program;

GCC – Grids Control Center;

EMF – Electromagnetic Field;

RAB - (Regulatory asset base) – return on investment.