Rosenergoatom might grant discounts to Rusal smelter given govt order
MOSCOW. Oct 8 (Interfax) - Rosenergoatom, which operates all of Russia's ten nuclear power plants, is prepared to grant a discounted electricity rate to UC Rusal's unprofitable Bogoslovsk Aluminum Smelter (BAZ) if the government issues an order that would provide for compensating the generating company for losses, the state nuclear power company's chief executive, Yevgeny Romanov told reporters on Friday.
Rusal, which intended to close unprofitable aluminum production at BAZ, signed an agreement with the Sverdlovsk regional authorities and the smelter's union in mid-September to keep some pot houses open if the electricity rate was lowered to three cents per kilowatt (0.96 rubles) for the amount requirement for production in 2013-2014. Such a rate has not yet been granted to the smelter, and it continues to operate at a loss.
However, if Rosenergoatom grants the discount it will suffer losses because the price on the region's wholesale electricity market is several times higher than what it required by the smelter.
"We are willing to participate in this plan on the condition that a government order taking into account our interests will be issued," Romanov said.
Since "we will lose some revenue as a result of such a decision, we want to know how we can compensate these losses," he said.
Economic Development Minister Andrei Belousov said during a visit to BAZ that the smelter would get cheap electricity. "I came to an agreement on this with [Rosatom head Sergei] Kiriyenko literally yesterday. The price will be three centers per kilowatt for two years," Belousov said.
Romanov said the loss in revenue could affect the implementation of a government approved program for the development of nuclear power, in which case the program will have to be revised or the company will have to be compensated.
He said the discussion of this issue is continuing and that Rosenergoatom "is not the active party in this discussion."
"We don't yet see that any final agreements have been reached between the participants in the discussion," Romanov said.
