OREANDA-NEWS. On March 20, 2007 in JSC “Interregional Distribution Grid Company of Center and North Caucasus” a meeting was held where the company and the RNCs of its service area work results for 2006 were summed up, and plans for the current year shaped, reported the press-centre of  “IDGC of Center and North Caucasus”.

The participants focused on the problem of new connections. The new connection is one of the network company activities, and the fee for connection is the main source of revenue and the development of the network complex structure.

The distribution network companies in the JSC “IDGC of Center and North Caucasus” service area received applications for new connections of 1 154 mW total capacity, over 27000 contracts were signed. The total amount of connected capacity is 800 mW. Over 1,658 mld. rubles were paid for the new connections.

The network companies refused to connect about 158 mW last year. All refusals for new connections were made in the regions where the tariff for connections was approved without taking into account major expenses for customer connection and capacity increase. Orel and Tula regions where the average tariff is 67,3rub/kw/h but the tariff which can allow to develop the network is not less than 7000 rubles.
In Kaluga region the construction of power energy units is financed at the expense of depreciation since the fee was approved in the sufficient amount, and in Smolensk region the fee was approved for the City of Smolensk alone.

Bearing this in mind, the specialists from JSC “IDGC of Center and North Caucasus” in cooperation with FTS, FAS, RAO “UES of Russia” and FNC representatives worked on the alterations to the Government Decree of the Russian Federation “On Approving the Rules for Natural Persons and Legal Entities New Connections to the Power Energy Receiving Equipment”, “On Price Determination For Power and Heat Energy in RF” and to The Provisions for Determining Fees for New Connections.

According to design changes, for fee determination new connection expenses for construction and reconstruction of the power network units are considered, i.e. the fee for new connections will include the investment component for network development. “IDGC of Center and North Caucasus” will be able to increase amount of finances received as revenue for new connections in 2007 up to 2,912 mld rubles and, therefore, to increase the volume of investments due to the alterations made.

Presently, the fee for new connections in 2007 have been approved in Ryazan, Astrakhan, Tver, Ivanovo, Belgorod and Nizhny Novgorod regions. In other regions the tariff, approved in 2006, still applies. The average tariff including the investment component in the companies of JSC “IDGC of Center and North Caucasus” service area amounts to 6878 he,/kW.