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
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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