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The regular meeting of the Board of Directors of IDGC of Centre, JSC (MRKC) was held on September 15, 2009.

16 September 2009

Three branches of IDGC of Centre, JSC — «Belgorodenergo», «Tverenergo» and «Lipetskenergo» — were transferred to tariff formation system on RAB basis since January 1, 2009. The initial capital base of these branches amounts to 44,3 bln Rubles.

RAB is the long-term tariff formation system, which primary purpose is to invite investments in enhancement and upgrading of infrastructure. The world practice showed that tariff regulation in power grid complex basing on RAB methods has a number of advantages over «expenses plus» system either for power companies so consumers. Thus, in RAB system companies will obtain the guarantee return of investments and income on investments, which is enough for credit servicing and profit receipt. Besides, companies will have motivation to reduce costs because saved funds will remain in the company in distinction from "costs plus" system applied in Russia historically. From consumers' point of view the main plus of RAB system RAB is the fact that increase of power supply reliability and service quality for new investments account is not implied to be conducted for multiple tariff growth account.

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