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ROSSETI to invest 13.5 billion rubles in the Belgorod Region and the Udmurt Republic

7 December 2018

Today, 7 December, within the framework of the International Forum “Electric Grids”, a subsidiary of ROSSETI’s Group in the Central Federal District signed agreements with the Belgorod Region and the Udmurt Republic aimed at the long-term development of the electric grid complex of the subjects.

In the presence of Pavel Livinskiy, Director General of ROSSETI, the Governor of the Belgorod Region Yevgeny Savchenko, the Head of the Udmurt Republic Alexander Brechalov and General Director of IDGC of Centre - the managing organization of IDGC of Centre and Volga Region Igor Makovskiy signed the relevant documents.

The agreements were signed as part of an instruction from Dmitry Medvedev, the Chairman of the Government of the Russian Federation, in order to ensure sustainable socio-economic growth of the territories and determine the conditions for the implementation of regulated activities for the provision of electric energy transmission services. We are talking about the implementation of the Integrated Program for modernization of the electric grid complex of regions using digital technologies.

The agreements fix several agreements based on long-term tariff regulation. As a result, the total funding of investment programs in two regions in the period from 2019 to 2021 will increase to 13.5 billion rubles.

As Pavel Livinskiy noted, the initiative of transition of the regions and grid companies to long-term tariff agreements was supported at the highest state level. 

“We are pleased that there are regions that are already ready to switch to a new format of cooperation with us. In the near future, the Kaluga and Voronezh regions will be added to the Belgorod region and the Udmurt Republic. The agreements are of great practical importance, being, in fact, a “road map” for solving such urgent tasks for the industry as consolidation and investment growth of the power grid complex of the regions. In addition, they lay the foundation for the recoupment of digital transformation projects without the consumer’s tariff burden, and also create conditions for the development of other activities,” the head of ROSSETI emphasized.

As examples, Pavel Livinsky cited a project for the development of urban electric transport, which will be implemented in the Belgorod region, as well as a project for development of outdoor lighting in the Udmurt Republic. 

“The scale effect of the agreements will be incomplete without consolidation of the regional lighting infrastructure. We believe that the funds received from the synergistic effect in this area should be directed to projects for the transition to outdoor LED lighting, creating a beautiful visual appearance of cities,” the head of ROSSETI emphasized, adding that the group is ready to implement similar projects in other regions of operations.

“The solutions fixed today in the signed agreements are supported by the President and the Chairman of the Government of Russia within the framework of the approved strategy for the development of the electric grid complex. As a result, ROSSETI receives a stable projected income and opportunities for investment development, and the region receives reliable energy supply, which is the basis of economic growth,” Vitaly Korolev, Deputy Head of the Federal Antimonopoly Service of Russia, emphasized in his speech.

“The Belgorod region is ready to implement digital projects so that the region’s energy complex becomes even more reliable and meets the most modern standards. In addition, today we discussed plans for the development of passenger transport on electric motors. I think, in this respect, our subject can also become one of the successful "pilots". I thank ROSSETI for their trust and I am confident of a good result,” said Yevgeny Savchenko, Governor of the Belgorod Region.

The head of the Udmurt Republic, Alexander Brechalov, called the joint work with ROSSETI in 2018 “a big and confident step towards a digital future”: “It’s no secret that we have the lowest tariff in the Volga Region and one of the lowest rates of investment in the energy sector in our region. Of course, this is holding back economic growth. After all, energy is the basis of development. The agreement concluded today will double the amount of investment in the grid complex of the subject. We are ready to act as one of the pilots of digitalization of grids. In addition, we are interested in the centralization of assets in the territory of the Udmurt Republic. For us, ROSSETI is not just a strategic partner, but a driver of change, implementing the most ambitious projects. We are pleased to support the company’s initiatives and look forward to fruitful work.”

In turn, General Director of IDGC of Centre - the managing organization of IDGC of Centre and Volga Region, Igor Makovskiy, noted that the signed agreements allow extending the time frame of investment planning, taking into account the forecast tariff decisions. 

“This will give an opportunity to more fully take into account the interests of the regions and synchronize our programs with the development programs of the territories with maximum accuracy,” the head of the subsidiary noted.”

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