Govt commission approves grid development strategy
MOSCOW. Dec 21 (Interfax) - The Russian government's power sector development commission has approved a draft strategy for the development of OJSC Russian Grids.
The government says on its website that Deputy Prime Minister Arkady Dvorkovich chaired a meeting of the commission, which gave the draft, which was submitted by the Energy Ministry, its "general approval for further discussion with sector participants and experts."
President Vladimir Putin signed a decree on November 22, under which the government will contribute its 79.55% stake in Federal Grid Company UES (FGC) to the capital of OJSC IDGC Holding and this company will be renamed OJSC Russian Grids.
The state will retain an interest in FGC with one share, according to the decree published by the Kremlin press service.
The goal of the restructuring, according to the decree, is the "further development of the power grid sector, coordination of work to manage this sector [and] restrain growth of tariffs for end consumers."
The state stake in Russian Grids in the list of strategic companies will be fixed at 54.52%, and its stake in FGC will be fixed at one share.
Putin has given the government one month to draft a shareholder agreement between the Russian Federation and Russian Grids setting out the procedures for the participation of company representatives in the management bodies of FGC, as well as the development strategy for Russian Grids. The development strategy for the power grid sector as a whole is supposed to be approved within three months.
The same amount of time has been allotted for the preparation of regulations ensuring the "transition to regulation of tariffs for electricity transmission services on the basis of parameters such as reliability and quality of customer service, the efficiency of the operational and investment activities of grid companies;" increased transparency in the preparation of grid companies' investment programs; gradual consolidation of regional grid organizations; reduction of cross subsidies in the power grid sector; as well as the gradual involvement of private investors in the distribution grid sector.
The process of restructuring IDGC Holding, including a new share issue in exchange for the state stake in FGC, is supposed to be completed by June 30, 2013.
The state-controlled FGC owns and manages the grid infrastructure of the Unified Energy System (UES). IDGC Holding, also controlled by the state, unites 11 interregional and five regional grid companies.
