Market Overview 31 March 2017 year

Market Overview Price Dynamics on the Russian Market Comments Electricity and Capacity Price Dynamics Electricity Price Dynamics on the Spot Market, RUB/MW/hour Change 1Q2017-1Q2016 1st price zone +2.4% 2nd price zone -6.5% Capacity Price Dynamics on the Wholesale Market ths RUB/MW/month (1) 1Q2017 1Q2016 Change Regulated agreements 161,380 148,105 +9.0% CDA 1 078,785 1 030,277 +4.7% КОМ 159,343 137,003 +16.3% Forced-mode regime 238,706 235,356 +1.4% Expensive generation 0,0 - Free bilateral agreements 129,621 121,408 +6.8% Electricity price on the spot market in the 1st price zone increased 2.4% YoY alongside with unfavorable domestic market conditions in the 2nd price zone where electricity price decreased 6.5% YoY; KOM’s capacity prices in the wholesale market went up by 16.3% YoY; Capacity payments for CDA objects grew on average 4.7% YoY due to adjusted mechanism for calculating the day-ahead market coefficient sand the CPI-indexed operating expenses and delta CDA payments for a number of objects Capacity Deliver Agreements (CDA) resulted in an average from 4.5 and 8.3 times higher price level in comparison with other segments of the capacity market. Electricity Sales Breakdown on the Wholesale Market, 1Q2017, TW*h(2) Capacity Sales Breakdown, 1Q2017(3) CDA 15.6% Regulated agreements 32.2% Forced-mode regime 4.8% KOM 9.9% Free bilateral agreements 37.5% Regulated Contracts 20.8 Free market 79.2% The total volume of sales: 33.6 TW*h The total volume of sales: 25.5GW ____________________ 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 (Russian generation) For Russian assets only Market Overview