RAB-regulation

In 2011 all our branches operated under RAB regulation with approved long-term regulation parameters. Following the execution of Russian Government Decree #1172 dd. 27.12.2010 on approval of the Rules on energy wholesale market since 01.05.2011 2011 transmission tariffs were reviewed in our service area. Growth rate of boiler tariff was limited to 15% on 2010.

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  Measurement units 2008 2009 2009/ 2008 2010 2010/ 2009 2011* 2011/ 2010
* Two tariffs
Permenergo
Average transmission tariff Copecks KW/h 49,1 58,5 19,2% 76,1 30,1% 89,0 17,0%
Maintenance rate Copecks KW/h 18,7 25,4 35,6% 36,5 43,8% 40,1 9,7%
Sverdlovenergo
Average transmission tariff Copecks KW/h 44,7 54,5 21,8% 72,3 32,7% 83,9 16,1%
Maintenance rate Copecks KW/h 12,6 13,8 9,6% 19,5 41,1% 20,2 3,5%
Chelyabenergo
Average transmission tariff Copecks KW/h 38,2 45,9 20,2% 74,0 61,3% 73,0 -1,4%
Maintenance rate Copecks KW/h 14,1 16,9 19,7% 23,9 41,1% 25,1 5,0%
IDGC of Urals
Productive supply Mln kW/h 79 852 82 225 3,0% 69 339 -15,7% 71 973 3,3%8
Total required gross revenues RUR mln. 34 949 43 462 24,4% 51 179 17,8% 59 306 15,9%
Average transmission tariff Copecks KW/h 43,8 52,9 20,8% 74,9 39,6% 82,4 11,6%
Required gross revenues for maintenance RUR mln. 11 573 14 360 24,1% 17 278 20,3% 19 299 11,7%
Maintenance rate Copecks KW/h 14,5 17,5 20,5% 24,9 42,7% 26,8 7,6%
  Measurement units 2008 2009 2009/ 2008 2010 2010/ 2009 2011* 2011/ 2010
* Two tariffs
Permenergo
Average transmission tariff Copecks KW/h 49,1 58,5 19,2% 76,1 30,1% 89,0 17,0%
Maintenance rate Copecks KW/h 18,7 25,4 35,6% 36,5 43,8% 40,1 9,7%
Sverdlovenergo
Average transmission tariff Copecks KW/h 44,7 54,5 21,8% 72,3 32,7% 83,9 16,1%
Maintenance rate Copecks KW/h 12,6 13,8 9,6% 19,5 41,1% 20,2 3,5%
Chelyabenergo
Average transmission tariff Copecks KW/h 38,2 45,9 20,2% 74,0 61,3% 73,0 -1,4%
Maintenance rate Copecks KW/h 14,1 16,9 19,7% 23,9 41,1% 25,1 5,0%
IDGC of Urals
Productive supply Mln kW/h 79 852 82 225 3,0% 69 339 -15,7% 71 973 3,3%8
Total required gross revenues RUR mln. 34 949 43 462 24,4% 51 179 17,8% 59 306 15,9%
Average transmission tariff Copecks KW/h 43,8 52,9 20,8% 74,9 39,6% 82,4 11,6%
Required gross revenues for maintenance RUR mln. 11 573 14 360 24,1% 17 278 20,3% 19 299 11,7%
Maintenance rate Copecks KW/h 14,5 17,5 20,5% 24,9 42,7% 26,8 7,6%

If we view average transmission tariffs in dynamics, we shall see a positive trend. In 2010 average tariff increase was rather high and totaled 39.6% on 2009. This significant growth was due to recession that resulted in the decrease of productive supply (-15.7% on 2009). At the same time required gross revenues (RGR) grew by 17.8%. In 2011 average transmission tariff, taking into account 2 tariffs, totaled 11.6% while the RGR grew by 15.9% on 2010. Growth of average maintenance rate in 2010 totaled 42.7%, in 2011 – 7.6% on the preceding year. The RGR for maintenance in 2011 was formed and approved using RAB method (growth totaled 11.7% on 2010).

Regulators in the Russian regions adopted the following long-term tariffs for 2012 taking into account:
  • ultimate (minimal and maximal) transmission tariff approved by the Federal Tariff Service (Decree #328-e/4 dd. 06.12.2011);
  • rate of return approved by Russian FST (FST Decree #217-e/4, #№218-э/5 dd. 01.09.2010);
  • long-term investment programs properly approved by authorized local administrations;
  • energy-saving and efficiency increase programs that meet the demand of the current legislation on energy saving.

Permenergo was transmitted to RAB since 01.01.2009, Sverdlovenergo and Chelyabenergo since 01.01.2011

The following long-term RAB parameters were approved: Basic operating expenses, net capital, rate of return on invested capital, operating cost index, iRAB, payback period.

Permenergo m.u. 2009 2010 2011 2012 2013
Basic operating expenses RUR mln. 3 889 5 028 5 363    
Operating cost index % 1% 1% 1% 1% 1%
iRAB RUR mln. 21 011 - - -  
Net capital RUR mln. 455 455 455    
Rate of return on old capital % 6% 9% 12% 12% 11%
Rate of return on new capital % 12% 12% 12% 12% 11%
Payback period years 35 35 35 35 35
Sverdlovenergo m.u. 2011 2012 2013 2014 2015
Basic operating expenses RUR mln. 2 816 2 955 3 088 3 236 3 387
Operating cost index % 1% 1% 1% 1% 1%
iRAB RUR mln. 20 779 21 903 24 321 28 084 33 037
Net capital RUR mln. 1 117 1 447 1 700 1 844 1 986
Rate of return on old capital % 6% 9% 11% 11% 11%
Rate of return on new capital % 12% 12% 11% 11% 11%
Payback period years 35 35 35 35 35
Chelyabenergo m.u. 2011 2012 2013 2014 2015
Basic operating expenses RUR mln. 2 706 2 835 2 967 3 105 3 250
Operating cost index % 1% 1% 1% 1% 1%
iRAB RUR mln. 15 389 15 983 17 141 18 868 21 762
Net capital RUR mln. 403 509 603 748 680
Rate of return on old capital % 6% 9% 11% 11% 11%
Rate of return on new capital % 12% 12% 11% 11% 11%
Payback period years 35 35 35 35 35

2012 transmission tariffs were approved by local regulators according to Russian Government Decree #1178 dd. 29.12.2011 on regulated pricing in energy sector. The Decree stipulates the approval of united (boiler) transmission tariffs in 1H2012 at 2011 level and 2H2012 within 11% on the approved tariff.