Opportunities and threats for the Rosseti Group

The Company has ample opportunities to ensure continuous operations and sustainable development. The Company’s weaknesses and threats are assessed on an ongoing basis as part of risk management processes and are taken into account when updating the strategy and long‑term development programme to mitigate possible negative consequences.


Strengths

  • Strategically important organisation with a special status of development, management of UNPG and distribution grid complex and participation in ensuring energy security of the country
  • Infrastructure with extended geographic reach
  • Status of a natural monopoly
  • Highly qualified technical personnel and high‑quality engineering solutions
  • Stable financial position
  • Recognisable brand
  • Large companies (with large volumes of energy consumption and sustainable development) in the portfolio of service consumers

Weaknesses

  • Level of marginal profitability depends on the adopted tariff decisions
  • High depreciation of distribution grid assets
  • Long investment cycle of high‑voltage facilities and high capital intensity of investment projects
  • Lack of quick solutions in the field of import substitution for a number of important items of equipment and software

Opportunities

  • Active participation in energy transition processes as an infrastructure company
  • Improvement of operational efficiency through the introduction of IT tools, new technologies and optimisation of business processes
  • Utilisation of the network format to develop additional/new services and services for customers

Threats

  • Economic stagnation and population reduction, slowdown of energy consumption growth rates
  • Development of own distributed generation by large consumers
  • Introduction of lean power consumption culture and technologies leading to reduced power consumption volumes
  • Development of technologies for supplying electricity to consumers without using distribution grids of the power grid complex
  • Lack of technological sovereignty (for high‑voltage power grid equipment)
  • Unlawful interference with power grid facilities and their information and telecommunications systems