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Nikolay Shulginov discussed utilities’ tariff regulation in the Far East with Head of Federal Antimonopoly Service

July 6, 2018. Moscow, Russia. Nikolay Shulginov, Chairman of the Management Board – General Director of PJSC RusHydro, and Igor Artemyev, Head of the Federal Antimonopoly Service, met to discuss tariff regulation for electricity and heat produced by RusHydro Group in the Far East of Russia.

RusHydro provides energy to consumers in all regions of the Far East. The Company’s facilities with installed capacity of over 13 GW produce over 90% of all electricity in the macro-region.

Nikolay Shulginov emphasized that economic development of the Far East Federal District is impossible without rapid development and timely maintenance of the region’s power system. Age of certain generating facilities is approaching 80 years, while the share of equipment exceeding its service life is over 30%. New construction along with upgrade of existing heat generating facilities in the district is essential for reliable supply of electricity and heat to the consumers in the Far East Federal District.

General Director of RusHydro added: “Implementation of the Decree of the President of the Russian Federation from May 7, 2018 “On national objectives and strategic tasks of the Russian Federation’s development in the period up to 2024” is our strategic priority. We must provide stable power supply to the consumers in the Far East on a medium-to-long-term basis. Upgrade of the current tariff system is crucial for RusHydro to complete such projects.”

In the course of the meeting both parties agreed to work together to come up with a solution on modifications to the existing tariff system for power generating facilities operating in non-price zones of the wholesale electricity market by introducing mechanism of long-term tariffs with due regard to manageable costs efficiency index as well as measures for energy conservation and efficiency.

The information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of RusHydro. You can identify forward looking statements by terms such as "expect," "believe," "anticipate," "estimate," "intend," "will," "could," "may" or "might," the negative of such terms or other similar expressions. We wish to caution you that these statements are only predictions and that actual events or results may differ materially from these statements. We do not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, general economic conditions, our competitive environment, risks associated with operating in Russia, rapid technological and market change in our industries, as well as many other risks specifically related to RusHydro and its operations.
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