Peretok Light: highlights of the Russian and global power sectors for 29 October to 5 November
Minenergo divides meters between TOs and discos
Minenergo approved a compromise solution to the question of ownership of the meters to be installed as part of development of smart metering systems. The right to install smart instruments will be divided between discos (distribution companies) and TOs (transmission owners) (first of all, Rosseti's arms). The former will get metering instruments in apartment blocks. Grid operators are expected to own the meters of the other consumers, as well as private houses and TSZh [housing co-ops (HCOs)]. But the second key issue in the implementation of smart metering systems remains open: who will foot the bill for the upgrading.
Power market locked from inside
Fatigued by insistent attempts by governors to gain preferential treatments from the governments for their states at the expense of the other energy market participants, Minenergo resolved to enact a federal ban on the admission of more states to the system of regulated contracts (RCs). Thus, left outside the market for the time being are six Republics of the North Caucasus, as well as Tuva, Buryatia and Karelia. Minenergo expects the ban on return to RCs to be finalized before the year is out.
TOs propose 3.7 increase in transmission tariff for Arkhangelsk Oblast
What the situation with the repayment of debts of bankrupt default providers (DPs) can look in practice was described by Kommersant last week. The inclusion in the tariff by Arkhangelsk Oblast of provision for Arkhenergosbyt's doubtful debts for which it lost its DP status could mean an increase in the transmission tariff by a factor of 3.7. The state regulator will nearly certainly reject the proposals of Northwest MRSK [interstate distribution companies (ISDCs)], which mean the doubling of electricity costs for consumers.
SGK and Enel Rossiya come up with different valuations of Reftinskaya GRES
Grigory Beryozkin, who has been saying for a year now that his YeSN group is interested in buying Reftinskaya GRES [Reftinsky State District Power Station], may have another go at negotiation with the station's owner – Enel Rossiya. The owner and the current favourite bidder for the asset, Sibirskaya Generiruyushchaya Kompaniya of Andrey Melnichenko, are fighting over 6 bln roubles – the difference in the valuation of the GRES.
Enel Rossiya's net profit down 20.5% due to «low demand» in the Urals
The largest consumer in Siberia, Oleg Deripaska's Rusal, increased its aluminium sales by 33.6% in the third quarter; the increase, however, is due first of all to the slump in the previous period. “Rusal has not so far reduced its consumption,” the regulators have been answering questions to this effect from journalists for more than a month now. Problems for power providers, however, can also be created by smaller customers, who cut their consumption in a down economy. Having disclosed a 2.1% output decrease for three quarters, Enel reported a 20.5% lower net profit for the same period.
Fitch downgrades General Electric's rating by 2 rungs, from A to BBB+
The rapid shrinking of the global market for gas turbines and the poorer financial health of major players can mean a stronger hand for Russian power providers, who have been waiting for the TPS modernization programme to get off the ground for six months now. Previously plans to set up production of a GE gas turbine in Russia were reported by Boris Kovalchuk, head of Inter RAO.