Govt approves FGC's long-term program, Russian Grids not discussed - sources
(technical repeat)
MOSCOW. Sept 25 (Interfax) - The Russian government on Thursday approved a long-term development program for Federal Grid Company (FGC) , but a similar program for Russian Grids was not discussed, two people familiar with what happened at the meeting told Interfax.
FGC spokesman Dmitry Klokov confirmed this. "The government approved the long-term development program," he told Interfax. The program contains various development scenarios and models. The board of directors should give its approval at a meeting late October or early November.
The Open Government press office told Interfax that instructions were given at the Cabinet meeting to give the program "general approval and finalize it, taking remarks into consideration, in conjunction with the expert council." The remarks concerned aspects of certain investment projects, the level of network losses and certain performance indicators.
Aliya Samigullina, spokeswoman for Deputy Prime Minister Arkady Dvorkovich, declined to comment on the government's decision until it has been officially announced.
The draft program discussed on Thursday contains FGC's anticipated results for 2014, actual results for 2010-2013, and an analysis of economic development prospects for the periods 2015-2019 and to 2030.
Reports said FGC is factoring tariff growth equivalent to the rate of inflation into the long-term program. Net electricity supply is expected to grow by 0.7% annually in 2016-2019, but no growth is expected in 2015.
The amount of FGC's capital expenditures in these years will depend on these parameters and on the possibility of receiving government funds. It was reported earlier that the company planned to invest about 685 billion rubles in the period from 2015 through 2019.
FGC intends to cut per unit capital expenditures by 30% by 2017 and reduce its administrative staff by 10% this year.
FGC has also factored into the program the possible sale of noncore assets, including a stake of 18.75% in OJSC Inter RAO UES and Mobile GTES.