According to the guidelines on the determination of connection fees approved by
FTS Act #209-e/1 dd. 11.09.2012, regulators of the Perm, Sverdlovsk and Chelyabinsk regions has approved a standardized tariff and maximum capacity rates for all branches of the Company for 2014. The regulators applied various methods for rate differentiation:
Permenergo: According to Perm Regulator Act #65–tp dd. 25.12.2013 maximum capacity rates were differentiated by a voltage level only for aerial and cable line construction. A С1 standardized tariff rate was not differentiated, but С2,С3 and С4 standardized tariff rates underwent a wide differentiation depending on a voltage level and equipment type.
Sverdlovenergo: Sverdlovsk Regulator Act #156-PK dd. 24.12.2013 approved maximum capacity rates and standardized tariffs for Sverdlovenergo branch. The Act stipulated differentiation of С1 rate on voltage level and capacity range but had no other differentiation, maximum capacity rates for aerial and cable line construction were differentiated only by voltage levels. Besides, the Sverdlovsk regulator issued Act #150-PK dd. 24.12.2013 stipulating standardized tariff rates for connection in the Sverdlovsk region and formulas to calculate connection rates for all grid companies operating in the Sverdlovsk region.
Chelyabenergo: Chelyabinsk Regulator Act #58/1 dd. 19.12.2013 stipulated maximum capacity and standardized tariff rates. The Act stipulated a wide differentiation of all rates by voltage levels and capacity range. Besides, maximum capacity rates were divided by activities. Later a new document (#13/8 dd. 24.03.2014) added a formula for connection fee calculation for applicants with connection period exceeding 1 year.
The table shows average weighted maximum capacity rates approved by the regional tariff regulators.
Analysis of changes in average capacity rate in branches, RURRussian ruble/kWKilowatt/hour:
|Growth / Drop, %||-||3.1%||15.4%|
High tariff for Permenergo in 2012 had no significant influence on the overall Company average tariff due to a low share of Permenergo in overall volume of maximum capacity used in connection fee calculation. Prior to 2013 the maturity of connection rates in the Perm, Sverdlovsk and Chelyabinsk regions was not limited to the official year. Thus, Permenergo rate, approved in December 2010, could be applied in 2011-2012 and a connection rate for many applicants remained unchanged since May 2009. Sverdlovenergo rates changed twice: since 01.01.2011 and 24.05.2012. Chelyabenergo connection rates in 2012 were applied on an individual basis; therefore, we used summarized data for comparison.
Types of standardized tariff rates in 2014:
|Types of standardized tariff rates||Permenergo||Sverdlovenergo||Chelyabenergo|
|A rate to cover connection expenses according to measures stipulated in item 16 of the guidelines (except b and c), RUR\kW - С1||505.28||399.72||79.66|
|- preparation of technical conditions for an applicant by a grid company (hereinafter referred to as the TC), RUR\kW||150.25||32.37|
|- verification by a grid company, RUR\kW||38.51||20.40|
|- participation of a federal official in an inspection, RUR/kW||3.48||0.00|
|- connection of applicant’s facilities and putting a switching device into position “ON”, RUR\kW||313.04||26.90|
|A rate to cover expenses incurred by a grid company for aerial line construction - С2, RUR\km||291,861.0||341,562.0||206,338.32|
|A rate to cover expenses incurred by a grid company for cable line construction - С3, RUR\km||825,010.0||482,937.75||484,663.77|
|A rate to cover expenses incurred by a grid company for substation construction - С4, RUR\kW||2,379.0||2,359.91||1,720.57|
The table demonstrates average maximum capacity rates approved by the regional tariff regulators. Sverdlovsk Regulator Act #156-PK dd. 24.12.2013 did not suppose the differentiation of a С1 rate by activities, the rate was differentiated by voltage levels and capacity ranges. Besides, the Act stipulated that maximum capacity rates for activities related to the construction of reclosers, transformer substations and main substations were equal to standardized tariff rates to cover expenses incurred by grid companies to construct substations in the Sverdlovsk region (С4), approved by Sverdlovsk Regulator Act #150-PK dd. 24.12.2013. A low average С1 rate in Chelyabenergo can be explained by the domination of requests with large maximum capacity and insignificant organizational expenses in the overall structure of requests used for the determination of a fee.
If we analyze connection contracts concluded according to 2014 tariffs, a rate per a maximum capacity unit was very common for the Company (average figures reaching 88%, excluding contracts with privileged applicants), in Sverdlovenergo and Permenergo the distribution of the rate reached 89%. Individual calculations did not exceed 1.01% of overall cases.