Connection tariffs

According to the methodic recommendations on the determination of a connection fee approved by Decree of Federal Tariff Service #209-e/1 dd. 11.09.2012, regulators of the Perm, Sverdlovsk and Chelyabinsk regions approved a standardized tariff and maximum capacity rates for all branches of the Company for 2013. The regulators applied various methods for rate differentiation. In P ermenergo the capacity rates were differentiated by a voltage level only in terms of aerial and cable line construction. A С1 standardized tariff rate was not differentiated, but С2,С3 and С4 standardized tariff rates underwent a wide differentiation depending on a voltage level and equipment type. In Sverdlovenergo the regulators approved capacity and standardized tariff rates. Differentiation of a С1 rate was planned on a voltage level and capacity range, maximum capacity rates for aerial and cable line construction were differentiated only by voltage levels. Besides, the Sverdlovsk region set standardized tariff rates for connection in the Sverdlovsk region and formulas for connection rates. In Chelyabenergo the regulators approved maximum capacity and standardized tariff rates. A wide differentiation of all rates by voltage levels and capacity range was planned. Besides, maximum capacity rates were divided by activities and measures.

  2011 2012 2013
Permenergo 12 531 12 531 5 416
Sverdlovenergo 3 615 4 123 6 709
Chelyabenergo 4 800 5 114 5 426
IDGC of Urals 5 189 5 313 5 477
uplift / drop, %   2.4% 3.1%

The table shows average maximum capacity rates approved by the regional tariff regulators. A high Permenergo tariff in 2011-2012 had no significant influence on the overall Company average tariff due to a low share of maximum capacity in P ermenergo requests in overall volume of maximum capacity used in calculation of a connection fee. Prior to 2013 the maturity of connection rates in the Perm, Sverdlovsk and Chelyabinsk regions was not limited to the official year.

Thus, Permenergo rate, approved in December 2010, could be applied in 2011-2012 and a connection rate for many applicants remained unchanged since May 2009. Sverdlovenergo rates changed twice: since January 01, 2011 and May 24, 2012. Chelyabenergo connection rates in 2011- 2012 were applied on an individual basis; therefore, we used summarized data for comparison.

Type of a standardized tariff rate Permenergo Sverdlovenergo Chelyabenergo
A rate to cover connection expenses according to measures stipulated in item 16 of the methodical recommendations (except b and c), RUR\kW - С1 533.00 445.17 85.20
including      
- preparation of technical conditions for an applicant by a grid company (hereinafter referred to as the TC), RUR\kW 160.00 35.58
- design verification by a grid company, RUR\kW 21.00 20.78
- participation of a federal official in an inspection, RUR/kW 94.00 0.00
- connection of applicant’s facilities and putting a switching device into position “ON”, RUR\kW 258.00 28.84
A rate to cover expenses incurred by a grid company for aerial line construction - С2, RUR\km 291 861.20 322 052.35 363 749.50
A rate to cover expenses incurred by a grid company for cable line construction - С3, RUR\km 1 227 616.71 419 945.87 505 780.87
A rate to cover expenses incurred by a grid company for substation construction - С4, RUR\kW 2 582.65 3 071.30 1 835.94

The table demonstrates average maximum capacity rates approved by the regional tariff regulators. Decree of the Sverdlovsk REC #230-PK did not suppose the differentiation of a С1 rate by measures and activities, the rate was differentiated by voltage levels and capacity ranges. Besides, the decree stipulated that maximum capacity rates for measures and activities related to the construction of reclosers, transformer substations and main substations were equal to standardized tariff rates to cover expenses incurred by grid companies to construct substations in the Sverdlovsk region (С4), approved by Decree of the Sverdlovsk REC #229-PK dd. 24.12.2012. A low average С1 rate in Chelyabenergo can be explained by the domination of requests with large maximum capacity and insignificant organizational expenses in the overall structure of requests used for the determination of a fee. If we analyze connection contracts concluded according to 2013 tariffs, a rate per kW of maximum capacity was very common for the Company (average figures reaching 85%), in Sverdlovenergo the distribution of the rate reached 92%. Individual calculations of a connection fee did not exceed 1.5% of overall cases.

Analysis of connection fee options in 2013 (branch breakdown)