Transmission tariffs

The main lines of Company’s activities are energy transmission and connection to networks that are regulated by the state. Our branches operate under RAB methodology with approved long-term parameters till 2017 (Permenergo – since 2009, Chelyabenergo and Sverdlovenergo – since 2011). Boiler tariffs are made up by expenses incurred by all grid companies of a region and are annually prescribed for a year ahead during the long-term regulation.

Revenues from energy transmission contribute most to the overall revenues of the Company. As of 2013 these revenues totaled RUR 55 258 mln. or 96% of overall revenues (+11% on 2012).

In absolute terms the uplift totaled RUR 5 566 mln. and was due to:

  • the growth of boiler tariffs for energy transmission;
  • transition of providers of last resort to transmission fees since 01.01.2013 basing on a tariff type (flat rate/ two-part tariff) chosen by a consumer under contract due to increased transmission
#BranchMUPermenergoSverdlovenergoChelyabenergoIDGC of Urals
 Boiler GRRRUR mln.15 72430 12414 20460 052
 Other consumersRUR mln.14 65129 82813 82858 308
 ResidentsRUR mln.1 0732963761 745

Decree of the Sverdlovsk regulator (Regional Energy Commission of the Sverdlovsk region) #171-PK dd. 23.12.2010 (as revised by the Sverdlovsk REC Decree #245-PK dd. 24.12.2012) has approved longterm parameters of regulation for IDGC of Urals operating under RAB methodology for 2012-2017. Flat (boiler) tariffs for energy transmission via Sverdlovsk regional grids for 2013, differentiated by half-year period, are approved by Decree of the Sverdlovsk REC #212–PK dd. 18.12.2012. Flat (boiler) tariffs for 1H 2013 were retained at rate prescribed for 2H 2012, being increased by 10% for 2H 2013 in comparison to the rate prescribed for 1H 2013. In 2013the uplift of average tariff for energy transmission via the Sverdlovsk regional grids and GRR totaled 10% and 5.5% on 2012 correspondingly. When flat (boiler) tariffs were approved for energy and capacity balance sheets of the 2013 Sverdlovsk network boiler, the following last-mile consumers (UAZ-SUAL, Rusenergoresurs, Rusenergosbyt and Atomenergosbyt) were excluded from the overall transmission and capacity volumes. Boiler productive supply in 2013 showed a 4% drop on 2012.

Decree of the Perm regulator (Regional Energy Commission of the Perm region) #49-e dd. 26.06.2012 stipulated the revision since 01.07.2012 of long-term tariffs and regulation parameters for Permenergo operating under RAB methodology. Decree of the Perm REC #49-e dd. 26.06.2012 (as revised by the version dd. 28.12.2012) affirmed RAB parameters for Permenergo, long-term gross revenue requirement calculated under RAB methodology for 2012-2017 (excluding loss compensation). The key approved parameters are as follows: net supply growth on 2012 totaled 0.08%, uplift of boiler gross revenue requirement excluding loss compensation and payments to regional grids equaled 13.43%. According to Russian Government Decree #1178 dd. 29.12.2011 Decree of the Perm REC #128-e dd. 28.12.2012 has affirmed flat tariffs for energy transmission in the Perm region for 01.01.2013- 30.06.2013 and 01.07.2013-31.12.2013. Flat (boiler) tariffs for 1H 2013 were retained at rate prescribed for 2H 2012, being increased by up to 10% for 2H 2013 in comparison to the rate prescribed for 1H 2013. In 2013 the uplift of average tariff for energy transmission in the Perm region totaled 10% on 2012. According to item 2 of the changes, introduced to acts issued by the Russian Government regulating operations of regional grid companies, approved by Russian Government Decree #403 dd. 08.05.2013, Permenergo prepared a proposal regarding changes into a consolidated forecast production balance sheet for 2013 to reduce its 2013 shortfall expenses. Using the proposal Federal Tariff Service approved changes into Decree #160-e/1 dd. 28.06.2012 stipulating that 1H2013 figures should adhere to 2H 2012 rate. As a result, Decree of the Perm REC #12-e dd. 29.08.2013 affirmed flat (boiler) tariffs with 1.56% growth on 2H 2013 since 01.09.2013.

2013 tariffs for energy transmission were approved by the regulator of the Chelyabinsk region according to Russian Government Decree #1178 dd. 29.12.2011. The approved flat (boiler) tariffs for energy transmission are as follows: 1H 2013 rate was equal to 2H 2012 rate, 2H 2013 rate should not exceed 10% (excluding investment program) on 1H 2013 rate. In 2013 the uplift of Chelyabenergo average tariff totaled 6.8% on 2012. In 2013 gross revenue requirement was reduced by 11.1%, smoothing effect (RUR 795 mln.) being applied in calculations. 2013 revenues fell due to changes in net supply volume in comparison to 2012. Several last-mile consumers (ChEMK and Magnesit) were excluded from Chelyabenergo production balance sheet in 2013. The tariff uplift for other consumers since 01.07.2013 totaled 16%. Losses from exclusion of ChEMK and Magnesit were partially compensated. In September 2013 the branch boiler included additional regional grid companies, their number increased from 22 to 44. Gross revenue requirement for regional grid companies in comparison to 2012 changed from RUR 1 157 thous. (26% of overall expenses of regional grid companies) to RUR 1 593 thous. (36% of overall expenses of regional grid companies). AES Invest became a second large holder of the boiler in the region. Therefore, since September 2013 payments for energy transmission in the Chelyabinsk region are made according to the legislation.

Approved long-term regulation parameters for the Company’s branches and gross revenue requirement (excluding loss compensations) for 2017 are disclosed in the table below.

    Year Sverdlovenergo Permenergo Chelyabenergo IDGC of Urals
RUR thous.
Gross revenue requirement excluding loss compensations 2012 15 940 625 8 010 416 12 146 367 36 097 408
2013 16 632 417 9 086 522 10 043 31235 762 251
2014 15 089 763 9 342 329 11 493 83035 925 922
2015 16 745 703 10 715 523 13 017 81540 479 041
2016 18 495 189 12 277 696 14 771 65645 544 541
2017 19 680 044 13 974 251 16 674 60650 328 901

Changes of average tariff for energy transmission in branches, kopecks/kW/h.

MU 2009 2010 2011 2012 2013
Sverdlovenergo kopecks/kW/h 54.5 72.3 82.9 88.6 97.4
Permenergo kopecks/kW/h 58.5 76.1 81.2 84.2 92.9
Chelyabenergo
(branch boiler)
kopecks/kW/h 45.9 74.0 74.3 67.3 71.9
IDGC of Urals kopecks/kW/h 52.9 73.8 80.1 80.7 88.8
Growth % 18.7% 39.6% 8.5% 0.7% 10.1%

Unstable flows of the Company’s average tariff were influenced by changing number of regional grid companies in Chelyabenergo boiler for 2011-2013.

Gross revenue requirement dynamics in branches, RUR mln.

Enlarge

Branch MU 2009 2010 2011 2012 2013 
    total GRR own GRR total GRR own GRR total GRRown GRRtotal GRRown GRRtotal GRRown GRR
Sverdlovenergo RUR mln. 20 953 5 323 22 341 6 038 27 9156 60028 5617 88230 1248 309
Permenergo RUR mln. 11 274 4 894 14 667 6 670 13 7814 63614 2374 88415 7245 533
Chelyabenergo RUR mln. 11 234 4 560 14 171 4 750 13 8854 76715 9866 51614 2044 632
IDGC of Urals RUR mln. 43 461 14 777 51 179 17 278 55 58116 00358 78419 28260 05218 473
Growth % 18 17 9-76202-4
Branch MU 2009 2010 2011 2012 2013 
    total GRR own GRR total GRR own GRR total GRRown GRRtotal GRRown GRRtotal GRRown GRR
Sverdlovenergo RUR mln. 20 953 5 323 22 341 6 038 27 9156 60028 5617 88230 1248 309
Permenergo RUR mln. 11 274 4 894 14 667 6 670 13 7814 63614 2374 88415 7245 533
Chelyabenergo RUR mln. 11 234 4 560 14 171 4 750 13 8854 76715 9866 51614 2044 632
IDGC of Urals RUR mln. 43 461 14 777 51 179 17 278 55 58116 00358 78419 28260 05218 473
Growth % 18 17 9-76202-4

The drop of own GRR of IDGC of U rals in 2013 was due to the drop of own GRR in Chelyabenergo. A significant growth of own GRR in Chelyabenergo in 2012 was caused by the presence of a large last-mile consumer (ChEMK) in energy consumption balance sheet when marginal transmission tariff growth was applied. In 2013 ChEMK and Magnesit were excluded from the transmission pricing and this resulted in a 17% decrease of transmission volumes and own GRR.

Transmission GRR structure of the Company in dynamics is as follows:

MU 2009 2010 2011 2012 2013
Boiler GRR RUR mln. 43 461 51 179 55 824 58 784 60 052
Regional gridcos RUR mln. 10 554 11 360 13 967 12 628 13 713
Losses RUR mln. 8 487 9 967 9 833 10 059 10 661
FSK RUR mln. 9 642 12 574 15 779 16 816 17 205
Own GRR RUR mln. 14 777 17 278 16 245 19 282 18 473