Technological Connection
The volume of technological connections performed by IDGC of Centre, JSC depends on the current state and development plans of the regional economies in which the branches of IDGC of Centre, JSC are located. In 2011 the volume of connected capacity (i. e. measured by contracts carried out in 2011) rose to 946.14 MWMegawatt, 63% higher than the capacity connected in the previous year. This was due to the connection of a large number of priority consumers (individuals with a maximum domestic load of 15 kW, and legal entities and individual entrepreneurs with a maximum load of 100 kW, subject to having previously connected capacity of Reliability Group III) and of major users, as well as the implementation of large-scale investment projects providing for individual payment schemes in 2011.
Volumes of technological connections in 2009-2011:
| Period | 2009 | 2010 | 2011 | Growth rate, % | |
|---|---|---|---|---|---|
| 2010/2009 | 2011/2010 | ||||
| Volume of technological connection, MW | 445.62 | 582.28 | 946.14 | 31 | 63 |
In 2011, the Company’s revenue from providing technological connection services decreased. In comparison with 2010 indicators, income from this activity decreased 23%. This was caused by amendments to the legislation in force governing the setting of fees for technological connection and by IDGC of Centre, JSC’s transfer, from January 1 21011, to RAB-based regulation resulting in the reconsidering of tariff decisions by Russia’s Regional Energy Commissions (REC). As a result of the prioritising of small and medium businesses and the implementation of major investment projects, the growth of Technological Connection is outstripping the revenue growth rate.
The size of the fee for establishing a network connection is established by a Regional Energy Commission, as set out in the guidelines of the federal regulatory authority, the Federal Tariffs Service (FTS) of the Russian Federation (Order No.365-e/5 of the Federal Tariffs Service of the Russian Federation, “On the Approval of Guidelines for Determining the Amount of Charges for Technological Connection to Power Grids” of November 30, 2010).
The charge for a Technological connection should compensate reasonable expenditure for the undertaking of measures to connect a facility to the power grids by calculating the gross revenue requirement (GRR) for Technological connection. As of January 1, 2011 the fee for a Technological connection includes expenses incurred by the construction of power grid facilities (from existing power grid facilities to connected power receivers and/or power industry facilities (“last mile” delivery).
In the same way, since January 1, 2011 the expenses of grid companies on the development of existing infrastructure, including co-operating grid debottlenecking, have been excluded from Technological connection fees and included instead in the power transmission service fee, in accordance with the requirements of Federal Law No 35-FZFederal Law, “On the Electric Power Industry,” of March 26, 2003. This brought about the reduction of the average fee for Technological connection in the area of operations of IDGC of Centre, JSC by 42.5% in 2011 as compared to the previous year.
Average fee for Technological connection within IDGC of Centre, JSC (based on rates as of year-endThe average fee does not include any payment rates for a Technological connection by priority consumers (individuals with a maximum domestic load of 15 kW as provided for by Resolution No. 119 of the Russian Government of February 14, 2009) and by individual connections):
| Indicator | 2009 | 2010 | 2011 | Growth rate, % | |
|---|---|---|---|---|---|
| 2010/2009 | 2011/2010 | ||||
| Average fee for Technological connection, in RUB/kW | 7,831 | 7,353 | 4,231 | -6.1 | -42.5 |