OREANDA-NEWS. July 31, 2007. The General Director of TGC-5 Eduard Smelov met with the management of OJSC “Izhstal” (unit of OJSC “Mechel”). Perspectives of setting direct contractual relations in the field of power supply, and providing the enterprise with heat were discussed.

“Izhstal” is one of partner enterprises located near OJSC “TGC-5” plants. As a consumer, “Izhstal” gets electric power directly from Izhevsk CHPP 1 of TGC-5 Udmurtia branch.

In 2009, in the framework of realizing priority investment projects, TGC-5 is planning to commission 164 MW of additional capacity due to installation of SGU. According to NWMEC rules, electric power from new assets, including that from reconstructed Izhevsk CHPP 1, will be sold at free prices. “In connection with it, Eduard Smelov marked, TGC-5 is already starting to discuss conditions of contractual relations with each particular consumer”.

On its side, “Izhstal” management expressed immediate concern about perspective plans of collaboration, having especially emphasized the problem of providing the enterprise with thermal power. The key point is tariffs. “On the federal level, in reference to the heat market, the problem of long-term contractation has not been settled by regulations yet. But in the nearest future we intend to formulate our proposals for changing tariff regulation. In particular, we are working out with the Udmurtia authorities the problem of realizing a pilot project on imposing long-term tariffs on heat”, Eduard Smelov marked. Long-term tariffs give advantages not only to consumers but they will let the generating company strengthen and advance its positions on the heat market, which, in its turn, will provide economic efficiency of generating heat and electric energy.