Market Overview 30 September 2016 year

Market Overview Price Dynamics on the Russian Market Comments Electricity and Capacity Price Dynamics Electricity price on the spot market in the 1st price zone increased 4.9% YoY alongside with unfavorable domestic market conditions in the 2nd price zone where electricity price decreased 7.5% YoY; KOM’s capacity prices in the wholesale market went up by 18.2% YoY; Capacity payments for CDA objects grew on average 28.0% YoY due to increased yields of long-term government bonds and the CPI-indexed operating expenses Capacity Deliver Agreements (CDA) resulted in an average from 4.5 and 8.8 times higher price level in comparison with other segments of the capacity market. Electricity Price Dynamics on the Spot Market, RUB/MW/hour Change 9M2016-9M2015 1st price zone +4.9% 2nd price zone -7.5% Capacity Price Dynamics on the Wholesale Market ths RUB/MW/month (1) 9M 2016 9M 2015 Change Regulated agreements 142,072 127,859 +11.1% CDA 925,807 723,082 +28.0% КОМ 133,763 113,150 +18.2% Forced-mode regime 205,559 203,995 +0.8% Expensive generation 0,0 - Free bilateral agreements 105,710 100,535 +5.1% Electricity Sales Breakdown on the Wholesale Market, 9M 2016, TW*h(2) Capacity Sales Breakdown, 9M 2016(3) CDA 14.2% Regulated agreements 30.2% Forced-mode regime 5.7% KOM 14.9% Free bilateral agreements 35.0% Regulated Contracts 21.4 Free market 78.6% The total volume of sales: 92.9 TW*h The total volume of sales: 25.7GW ____________________ Capacity prices dynamics is calculated on the base of nominal average price of 1MW of capacity sold in each market segment Electricity Sales Breakdown on the Russian Wholesale Market For Russian assets only Market Overview