Federal Grid Company FEES FTS confirms FedGridCo 2012-2014 RAB tariffs

  Federal Grid Company (FEES) - FTS confirms FedGridCo 2012-2014 RAB tariffs

RNS Number : 8312D
JSC Fed Grid Co of Unified Engy Sys
22 May 2012

FTS confirms Federal Grid Company 2012-2014 RAB tariffs

22 May 2012, Moscow - Federal Grid Company of Unified Energy System  ("Federal 
Grid Company" or "the Company") (MICEX-RTS,  LSE: FEES), announces that on  21 
May 2012  Russia's  Federal  Tariff  Service  (FTS)  confirmed  the  Company's 
regulatory asset base (RAB) tariffs for 2012-2014.

Using regulatory  asset  base methodology,  the  following tariffs  have  been 
determined  for   electricity  transmission   across  the   unified   national 
electricity grid (UNEG) for all regions  of the Russian Federation except  the 
North Caucasus and Stravropol Krai:

        Period          Tariff (RUB/MW month) Increase (%)
01.07.2012 - 30.06.2013      123,328.44          11.0%
01.07.2013 - 30.06.2014      134,964.06           9.4%
01.07.2014 - 30.06.2015      147,681.20           9.4%

For the North Caucasus and  Stavropol Krai, the tariffs  have been set at  RUB 
48,540.01, RUB 53,119.60 and RUB 58,124.85 per MW month from 1 July 2012, 2013
and 2014,  respectively. Tariffs  for electricity  transmission in  the  North 
Caucasus and Stavropol Krai during the regulatory period will grow by 10.9% in
2012, 9.4% in 2013 and 9.4% in 2014.

Rates of return have been set as follows:

· on invested capital ("new capital"): 11% in 2012, 10% in 2013 and 2014

· on capital  invested before the  start of the  regulatory period  ("old 
capital"): 6.5% in 2012, 7.8% in 2013 and 10% in 2014.

The tariffs will ensure  the financing of  the Company's long-term  investment 
programme as amended by  Russia's Ministry of  Energy. Implementation of  the 
investment programme will reduce the number of "autonomous" main  substations, 
thus connecting new consumers to the grid; it will also significantly increase
the reliability of energy supply  to existing customers. In addition,  network 
efficiency  will  be  maintained  by  bringing  into  service  50,386  MVA  of 
transformer capacity and 13,147 km of transmission lines by the end of 2014.

Federal Grid  Company adopted  RAB-based regulation  of tariffs  on 1  January 


                       Analysts / Investors
Federal Grid IR team            Work                  Mobile
Alexander Duzhinov   +7 (495) 710 9064           +7 (916) 041 8053
Nadezda Sukhova      +7 (495) 710 9541
Egor Toropov         +7 (495) 710 9333 ext. 2275
Vladimir Baklanov    +7 (495) 710 9333 ext. 2926
                       International Media
M:Communications                Work                  Mobile
Tom Blackwell        +7 (495) 363 2841           +7 (919) 102 9064
Sam VanDerlip        +7 (495) 363 2845           +7 (916) 306 6112

About Federal Grid Company

Federal  Grid  Company  is  the  operator  and  manager  of  Russia's  unified 
electricity transmission  grid  system, including  high  voltage  transmission 
lines, and holds the status of a natural monopoly.

The Company's assets  include over 124,000  km of transmission  lines and  854 
substations with over 322  GVA of 35-750 volt  transformer capacity. Based  on 
the length of transmission lines  and installed transformer capacity,  Federal 
Grid is the largest  publicly traded electricity  transmission company in  the 

Federal  Grid's   business  is   to  provide   electricity  transmission   and 
technological connection services. It maintains  and develops the grid  system 
and supervises grid  facilities and  infrastructure in 73  regions of  Russia, 
covering a  territory of  13.6 million  square kilometres.  Its customers  are 
regional distribution companies,  electricity suppliers  and large  industrial 

Since 1 January  2010, Federal  Grid has  operated under  a 5-year  regulatory 
asset base (RAB) model.

The Company  was  incorporated in  June  2002  as part  of  reorganisation  of 
Russia's electrical power  industry. The largest  shareholder, with a  79.55% 
stake, is the Russian Federation Government.

Federal Grid  Company's ordinary  shares  are listed  on the  MICEX-RTS  stock 
exchange under the ticker FEES and the Company's GDRs are traded on the London
Stock Exchange under the same FEES symbol. The Company's shares are  included 
in the MSCI Emerging Markets and MSCI Russia indices.

In 2011 the Company's IFRS  revenue for 2011 was  RUB 139,571 million (up  23% 
compared to 2010), adjusted EBITDA as RUB 83,760 million (a 24% increase  from 
2010), and adjusted net profit was RUB 38,241 million (up 37% on 2010).

Further information can be found atwww.federal-grid.com

                     This information is provided by RNS
           The company news service from the London Stock Exchange


MSCLIFETEIIFFIF -0- May/22/2012 08:52 GMT
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