12 Oct 2023 15:30

Inter RAO agrees with China to include duty in cost of electricity exports

MOSCOW. Oct 12 (Interfax) - Inter RAO has reached agreement with China to include duty in the cost of electricity exports, company spokesperson Alexandra Panina told reporters on the sidelines of Russian Energy Week.

"We have come to an agreement with China. China is raising the price under our contract by the amount of the duty. China is committing to pay this duty," Panina said.

She said the line that supplies the electricity was under repair.

"This line has not been switched on yet. We'll have to draw up contracts, it'll take several days. This line is still under repair. It should be out of repair on October 22," she said.

Supplies to China will remain at 120 MW for almost the entire month of October, Panina said.

She also said the agreement with China did not remove the need to amend the energy market regulations.

"Our amendment is now needed so that this price increase can get through to us, as an exporter, so that we can pay it [the duty] to the Russian budget. Payment will be made by the Chinese partners. Inter RAO will have a margin of 5%, plus what China will pay," Panina said.

Nothing will change for consumers in the Far East, she said.

The Russian government recently approved a resolution to impose export duties from October 1, 2023 to the end of 2024 on a broad range of goods in the amount of 4-7% when the U.S. dollar's exchange rate is 80 rubles or more; the duty increases as the ruble weakens. Commodities that are exempt from the duty include oil, gas, grain and forest products.

Inter RAO is Russia's sole electricity export/import operator.

It said in early October that it had successfully negotiated with Mongolia to increase prices, and electricity supplies to this country continue.