Market Analysis

In the autumn of this year in six areas of activity of JSC MRSC of Center and Volga Region will involve working groups on the harmonization of transition to the regulation of tariff for transmission services of electricity by the method of return on invested capital (RAB), the company reported.

Earlier the head of the Energy Ministry Sergei Shmatko recommended that all distribution network companies to fully pass on the RAB in 2010. Graphs of the transition network companies in the RAB should be approved shortly. The Board of Directors of JSC MRSC of Center and Volga Region held on September 15, 2009 meeting, endorsed this decision and instructed the Energy Minister Director General of JSC MRSC of Center and Volga Region take all necessary measures for the transition to a new system of tariff regulation c January 1, 2010.

From 1 January 2009 transition to RAB-regulation was implemented in two branches of JSC MRSC of Center and Volga Region - Tulenergo and Ryazanenergo. In parallel, the power company experts were preparatory work on the transition to RAB in other branches of the company.

For branch Kalugaenergo Ministry of competition policy and the rates of Kaluga region has taken a positive decision on the establishment of long-term tariff of the electricity transmission at 2010-2012. using the method of RAB. In this regard, a statement of the Ministry was sent May 20, 2009 in the FTS of Russia to agree with the application of the investment program approved by the Governor of Kaluga region.

In addition, the energy was directed computational materials for consideration to the regulatory authorities in Vladimir, Ivanovo, Kirov, Nizhny Novgorod region, as well as the Republic of Mari El and Udmurtia Republic.

Regulators in those regions considered initiative Power Upgrade to a new system of tariff regulation perspective. In their view, the method of return of investment capital RAB allows the industry to attract more large-scale loans and funds from investors and update the main production facilities involved in the transmission of electrical energy, more intense. An important result of its implementation is to achieve the optimal level of wear and tear of equipment, improving the reliability of power supply to consumers, to ensure the feasibility of accession of new capacity and reduce the amount of payment for technological connection, the report saysIDC.

However, the regulators listed the regions and republics proposed a joint energy company working with the commission, whose task is to discuss the options, legal aspects and timing of the transition regions at RAB. The first working group meetings will be held in early October.
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