Energy Ministry briefs Dvorkovich on electricity sector anticrisis proposals, no decision yet
MOSCOW. Jan 30 (Interfax) - A meeting Deputy Prime Minister Arkady Dvorkovich held on Friday that focused on monitoring the situation on the electricity market did not produce any decision on anticrisis measures in that area, a number of industry sources told Interfax.
The Energy Ministry confirmed that the meeting was held, but had no comment on the proposals aired there, one electricity market source told Interfax.
The day before, the ministry had submitted a letter to Dvorkovich listing the priority anticrisis measures in 2015. Among the sector-wide measures were greater payment discipline, revision of business plans that cut administrative and management expenses and key efficiency indicators.
Other general measures included introducing benchmarking of operating costs given tariff regulation of grids, introduction of capacity reserve payments in 2015 and the take-or-pay mechanism.
The Energy Ministry also proposed sale of noncore grid assets this year, including Russian Grids' electricity retail companies. The document, which has been viewed by Interfax, also reports on the possible transfer by Russian Grids of subsidiary/dependent companies into trust management. The Energy Ministry proposes providing the grids with financial assistance in receiving compensation for the difference in interest rates on loans [given growth to 20%-30% annually] or creation of a mechanism of banking sector support [providing loans at discount rates].
The Energy Ministry supports compensation to the grids for "missing revenue" from "the last mile" (through higher tariffs on electricity transmission services among other compensation), compensation for HBB smoothing under RAB (possibly be extending the term of regulation) and compensation for unaccounted cross-subsidizing. In addition, the ministry may meet the grids halfway in terms of reducing missing revenue from discounted technical connection.
The grids and the generating companies that are owned by the state in whole or in part - RusHydro , Inter RAO UES , Rosatom - are expected to optimize their investment programs in 2015.
