FGC to get ES Vostok grid assets in transfer to RusHydro
MOSCOW. July 14 (Interfax) - The grid assets of RAO ES Vostok will be "integrated into Federal Grid Company (FGC)" when ES Vostok is transferred to RusHydro .
The provision is contained in a Russian government resolution dated July 7. It tasks the Energy Ministry and Rosimushchestvo with carrying out the provision.
An informed source told Interfax that this still does not concern the full spin-off of grid operations from energy companies in ES Vostok. The transfer to FGC includes "grids tied to system reliability", the source said, adding that these grids will be determined by the Energy Ministry. For instance, one possible option would be for Far East Distribution Grid, which might be transferred to IDGC Holding, for instance, through an asset swap.
During the energy reform, UES Russia was broken up into three main business segments: generation, transmission and retail. Transmission is handled by Federal Grid Company (backbone grid) and IDGC Holding (distribution networks). The law prohibits combining transmission with sales and generation.
An exception was made for ES Vostok because it operates in an uncompetitive portion of the electricity market and is the monopoly operator in its territory.
RusHydro owns most of Russia's hydroelectric stations with 25,000 megawatts of capacity. It will soon receive the state's 52.68% stake in ES Vostok in payment for a supplementary issue of shares.
ES Vostok was formed on July 1, 2008, the same day UES Russia was dissolved. The company operates the electricity sector in the Far East. Gazprom Energoholding LLC is the largest minority shareholder with a 10.49% stake.
FGC was formed in 2002 to manage the unified electricity grid. It has facilities in 73 Russian regions.