Site colours:

Overview of macroeconomic factors

Factors that determine the state of the Russian economy in general and have an impact on the electric power industry:

GDP movement

The index of the physical volume of GDP in 2022 relative to 2021 was 97,9%


In 2022 the consumer price index was 111,9% from the beginning of the year

Interest rates to attract credit resources

As of 31.12.2022, the key rate of the Bank of Russia is 7.5%. On 16 December 2022, the Board of Directors of the Bank of Russia decided to keep the key rate at 7.50% per annum. The current rate of price growth is moderate and consumer demand is subdued. Inflation expectations of households and businesses have not changed significantly, while remaining at an elevated level. At the same time, pro-inflationary risks have grown and prevail over disinflationary ones. This is due to the growth of pro-inflationary pressure from the labour market, the deterioration of the terms of foreign trade and the easing of the budget policy

The dynamics of the industry development is also determined by a number of specific factors:

Factors descending in significance

State regulation of tariffs


Electricity transmission and grid connection are regulated by the State. Regulatory approval of tariffs for services of the Company directly influences volumes of received proceeds

The current state

The Government of the Russian Federation implements a tariff policy based on the inflation minus principle.

Setting tariffs below the economically justified level will lead to underfunding from tariff sources of the Company’s current activities and investment program

Measures to minimize the consequences (if available)

1. Economic justification of costs included in tariffs, including the inclusion of economically justified costs in tariffs incurred in excess of those recorded in tariffs and incurred due to reasons beyond the Company’s control over previous periods.
2. System-wise work to reduce costs and optimize the investment program.
3. Implementation jointly with PJSC Rosseti of measures to amend the current legislation of the Russian Federation in the field of pricing for services of natural monopolies to take into account the interests of distribution grid companies in setting tariffs at the retail market.

Changes of energy consumption


Change of energy consumption has a direct impact on the state of the industry

The current state

The actual consumption of electricity in the Unified Energy System of Russia in 2022 amounted to 1 106,3 billion kWh, which is 1.5% more than in the same period of 2021 (under comparable temperature conditions last year and excluding the impact of a leap year – growth is estimated at 1.8%)

Measures to minimize the consequences (if available)

A set of measures to increase non-tariff sources of income

Changes of prices for the wholesale electricity market


Changes in electricity prices on the wholesale electricity and capacity market directly affect the amount of compensation for electricity losses in electric grids and, accordingly, the entire activity of the Company

The current state

In 2022, the one-part price of electricity on the wholesale electricity market increased by 4,6% compared to 2021

Measures to minimize the consequences (if available)

A set of measures to reduce electricity losses in electric grids

The current state of the industry


The state of the industry has a direct impact on all aspects of the Company’s activity

The current state

Substantial depreciation of main generating and grid equipment

Reduction of investment programs in the industry

The tariff policy, leading to both an underestimation of both financial performance (pricing on a "cost plus" basis), and the real loss making for a number of companies

Measures to minimize the consequences (if available)

Implementation of the concept of digital transformation
The cost management system implementation
Implementation of new management tools by the Company, automation of key functions to improve the efficiency of accepting administrative decisions