Two more branches of IDGC of centre will transfer to RAB from the 1st of  January 2010

Following the results of negotiation between IDGC of Centre, JSC and regional regulatory authorities the applications on transfer to regulation of power transmission tariff by RAB-method of five branches of the Company — “Bryanskenergo”, “Kostromaenergo”, “Kurskenergo”, “Smolenskenergo” and “Yarenergo” were sent into Federal Tariff Service (FTS).

Federal Tariff Service did not accept applications regarding “Bryanskenergo”, “Kostromaenergo” and “Smolenskenergo” considering that they had been executed with relation to five-year period of regulation. Before the change of regulatory and legal framework FTS is going to transfer companies to RAB on the basis of three-year period of regulation. Nowadays IDGC Holding is carrying out the active work on alterations in the law for acceptance of five-year period of tariff regulation. Applications regarding “Kurskenergo” and “Yarenergo” were approved by FTS.

Therefore, in the present situation IDGC of Centre had already transferred and took decisions concerning transfer to RAB-regulation of five from 11 branches of the Company. Since 2009 the following branches transferred to RAB: “Belgorodenergo” with base of capital on residual value (iRAB) at the rate of 19,9 billion rubles, “Lipetskenergo” (iRAB — 10 billion rubles), “Tverenergo” (iRAB — 14,4 million rubles). Beginning with 2010 RAB-regulation will be applied by “Kurskenergo” (iRAB — 10,8 billion rubles) and “Yarenergo” (iRAB — 8,97 billion rubles).