Federal Grid Co tariff to grow 11% in July 1, 9.4% in 2013, 2014
MOSCOW. May 21. (Interfax) - The Executive Board of the Russian Federal Tariffs Service (FTS) has confirmed the rate of tariff growth for Federal Grid Company (FGC) from July 1 this year until 2014 inclusive.
An industry source told Interfax that the tariff would grow 11% in H2 2012, and 9.4% from July 1 2013 and July 1, 2014.
The source said the tariffs were differentiated on two counts: transmitting electricity in Russia as a whole and separately for the North Caucasian grids. The tariff there will rise 10.8% on July 1, 2012 and by 9.4% from July 1 2013 and July 1, 2014.
Furthermore, the FTS has equalized the standard for the income-productivity of FGC's existing capital with last year's new regulatory level (now it is 2014); the figure will be 10%. The standard for income-productivity of old capital last year was 9.1%. The source said this is connected with the renewal of its funds during the entire period of regulating the grid company's operations.
At present, the so-called 'reloading' of the system of Regulated Asset Base (RAB) tariff-formation is underway, a measure aimed at the reconsideration of a number of basic regulatory parameters for restraining end prices for electric power. The FTS had planned to complete the tariff review by April 1, but did not due to the absence of company investment programs and to the non-readiness of a program for the development of facilities themselves. The timeframe was pushed back to June 1 so that they will take force as of July 1.
However, the FTS last week published its draft governmental resolution, which suggests moving the RAB-tariff parameter reconsideration from July 1 to November 1 for companies at which operations regulation in 2011 was done by this method, in conditions of their lack before June 1 of coordinated parameters, including due to a refusal by the FTS itself.
Also, the service suggested that the Economic Development Ministry, Energy Ministry, FGC, and OJSC IDGC Holding present to the government before September 1 - if need be - a draft on the reconsideration of long-term parameters for the regulation of operations and tariffs for FGC and IDGC, as well as tariffs for territorial grid organizations that factor in the possibility of their exceeding the single-rate boiler tariff.
Regarding the draft document, expectations are that the Energy Ministry will before August 25 confirm FGC's investment program for the period until 2018, having which is an absolute prerequisite for getting RAB tariffs.
RAB is a system of long-term tariff regulation based on returns on invested capital that makes it possible to attract long-term investment. FGC UES switched to RAB in 2010, and IDGC made the transition to the new method of regulation gradually: pilot companies in 2009, some in 2010 and the remainder at the beginning of 2011.
