Peretok Light: highlights of the Russian and global power sectors for 27 August to 2 September

Total dividends for 2018 from Rosseti can be some 5b roubles

The last week of summer saw the energy community spiritedly discussing the market outlook for Rosseti. Last year the group paid no dividends because in was in the red according to RSBU [Russian Accounting Standards (RAS)], while being in the black according to IFRS. This year the management of the government company promised to increase the total payouts up to 5 bln roubles – half has already been credited to the shareholders in the form of interim dividends for the first quarter.

Artemyev: “FAS is prepared to set a 10-year tariff for Rosseti before the year is out”

Previously, the Rosseti head Pavel Livinsky claimed that it was necessary to set long-term tariffs for the group's services, and specifically to lay down “the rules of the game” and enable dividend payment. Last week the head of the Federal Antimonopoly Service (FAS) said that such a decision can be made as early as this year. 

Investments instead of dividends for Rosseti Transneft and Russian Railways?

It also became known at that time, however, that the government was discussing the option that infrastructure companies would opt out of dividend payment; the savings would be used for major projects as part of their investment programmes. For the time being, this option is being considered in respect of three government-controlled companies.  

Kozak: «The government is not discussing Rostekh's buying into Rosseti»

Another important bit of news for the grid group cropped up in an interview with vice prime minister Dmitry Kozak. The authorities declined to back the idea of Sergey Chemezov, head of Rostekh, who said in late May that the government corporation expected to get up to 30% of Rosseti's equity through a secondary offering. According to Rostekh, the deal will enable companies to effectively implement digitization of the grid infrastructure, which is currently estimated at 1.3 trln roubles. Rostekh is not expected to be allowed to buy into Rosseti; the company “will only be allowed to bid for an equipment supply contract,” said Mr Kozak. 

President approves upgrading

Presidential Commission for TEK [Fuel & Energy Complex (FEC)] met on Monday, 27 August. Having discussed in the presence of Vladimir Putin the outlook for the coal industry, the meeting moved on to this year's key issue for the energy market: the TPS modernization programme. President accepted in principle the programme's parameters, but a number of fine points remain to be settled at the final stage of preparing the regulatory framework in September.  

Kravchenko: “The upgrading scale will be 41 GW, with up to 2 GW to be upgraded in FEFD”

As was later reported by Vyacheslav Kravchenko, deputy head of Minenergo, the president-chaired meeting also finalized the concept of TPS modernization in the price-control zones, first of all in the Far East. Upgrading (quite often, development of new) of capacity outside the free-price zones will mean a surcharge of about 200 bln roubles for the power market, which will make it possible to upgrade up to 2 GW of capacity. The new surcharge is expected to be extended to consumers at large. 

SilMash wants 3b roubles of public money in 2019 for GTU [gas-turbine plant (GTP)] development

In mid-September, the gas turbine commission of RAN [the Russian Academy of Sciences (RAS)] and REP Kholding, an engineering group, will hold a research and development session in St Petersburg with the focus on the outlook for national gas-turbine design. Their competitor, Siloviye Mashiny, targeted by Western sanctions, has opted for a more pragmatic approach. Aleksey Mordashov, chair of the Board of Directors and majority shareholder in the company, personally asked Mr Putin for 3 bln roubles and, according to a statement from the press service of SilMash, received green light.

SUEK is now the direct owner of Sibirskaya Generiruyushchaya Kompaniya

Sanction risks continue prompting the owners of national energy provider to leave offshore jurisdictions and move their holdings to Russia. Hard on the heels of SilMash and En+, Sibirskaya Generiruyushchaya Kompaniya [Siberian Genco] had its moved from Cyprus to Russia by Andrey Melnichenko, majority shareholder in SUEK [Siberian Coal Energy Company]. 

03-09-2018 15:41