Transfer to RAB promotes the development of the power grid complex and economy of regions

в 300 Currently power consumption of Kostroma region is 650 MW. Furthermore, capacity of facilities being constructed which is planned to be connected is estimated in 300 MW. Loadings in supply centres are increasing. In the nearest future capacity deficit at SS “Buy” will be 10 MW, at SS “Vostochnaya-1” — 6,9 MW, at SS “Severnaya” — 3,3 MW. Owing to the program on power grid equipment renovation implemented by the power engineers of IDGC of Centre, its depreciation has decreased from 68 up to 60 % for the last five years.

The Government of Russia and Ministry of Energy approved the transfer of all regions of the Russian Federation in the responsibility zone of subsidiary distribution grid companies of IDGC Holding to RAB-regulation of tariffs for electric power transmission till January 1, 2011. Determination of tariffs on the basis of long-term regulation parameters will allow power engineers to raise investments, increase power capacity, implement new technology, reduce costs and improve service quality, and investors to return invested capital with a certain rate of return. At the moment IDGC of Centre carries out preparatory work on transfer of Kostromaenergo to RAB-regulation since July 1, 2010. 
 
RAB-регулирование Alexandr Glebov, Deputy General Director — Director of the branch of IDGC of Centre, JSC — “Kostromaenergo”, noted: “On the basis of RAB-regulation we will be able to ensure quality and reliable power supply of consumers at high level. New tariff will promote significant increase of the branch investment program, what will provide the opportunity to develop the power grid complex efficiently reducing the grid depreciation percent and creating reliable basis for the region economy development”.

For reference:
At present five branches of IDGC of Centre work in new tariff making system: since January 1, 2009 Belgorodenergo, Tverenergo and Lipetskenergo have been transferred to RAB, since January 1, 2010 — Kurskenergo and Yarenergo. Since July 1, 2010 the Company is planning to transfer six branches more: in Bryansk, Voronezh, Kostroma, Orel, Smolensk and Tambov regions to the system of long-term regulation of tariffs for electric power transmission services.