OREANDA-NEWS. On 16 July 2009 was announced, that the rates for electric and heat power, applied in the Far East, do not provide the break-even operation of the Far Eastern energy companies. As a result only in JSC “Far Eastern Generating Company” (JSC “FEGC”) the debt load increased over two times during the last two and the half years. It was reported at the meeting at the Federal Service for Tariffs and rates (FST), which has been held in Khabarovsk.

Constant deterrence of power rates in the Far East prevent from development the local energy sector. Calling on the regulating authorities for searching the mutual understanding in the issue of forming the rates, the First Deputy General Director of JSC “FEGC” Arkady KOZYAIKIN, who took part in the meeting, stressed that “this problem surely will not be solved by ignoring it”.

In the rates for electric and heat power, applied in the Far East, are practically absent the funds for investments. The depreciation rates are enough only for partial restoration of the fixed assets, but there is no funds envisaged for new construction. The Far Eastern energy sector is allotted by the state rates regulating authorities average 6.6% of the entire rates amount approved. As well as in the rates of other energy companies share of investment funds is over 40%. Nevertheless the Far Eastern energy sector could not avoid renovation – around 70% of fixed assets here are out of date morally and physically. Only JSC “FEGC” has out fifteen stations three of pre-war construction.  

In order to prevent from any doubts in reliability of power supply to the customers, the JSC “Far Eastern Generating Company” has to attract loans and update the operating energy sites and construct new ones. In 2008 the company has allotted over 10 billion roubles of investments – twice more than in 2007 and four times more than in 2006. The lion’s share of these funds is the credits. At the same time the expenses for loans service (interest payments) were taken into account in the power rates in enormously low volume. In 2009 the situation is aggravated due to abrupt raise of bank interest rates reasoning by the financial and economy crisis.

The rates do not take into account the actual raise of prices for coal, fuel oil and gas. Prospect figures, set in the rates, are far from reality. On opinion of Arkady KOZYAIKIN, the regulating authorities are used corrupt price deflators. Only in the last year the fuel for power stations and boilers costs JSC “FEGFC” nearly one billion roubles over the figures set in the rates. Same situation is formed in this year. Besides that since 2008 there were cancelled the allowances for rail transportation of fuel for the Far Eastern energy companies, which lead to increasing the final cost of fuel.

Less than required by the industrial regulations, in the rates are envisaged the funds for repair of the basic equipment. Annually federal and regional authorities of rates regulating are taken in account these expenses not in full scale, that is why necessary repairs are often deferring for future periods, increasing the possibility of failure of the equipment. In the JSC “FEGC” the amount of “deferred” repairs for three years of the company operation has reached 3.5 billion roubles.

It is lowered the level of such mandatory for energy sector expense items like tax payments and wages fund, which could not be lower than set in the Industrial Tariff Agreement. As a result of all above the reliability of power supply in the JSC “FEGC”, for example, in the last year has been reached by the cost of nearly two billions roubles losses.

As stresses Arkady KOZYAIKIN, the mutual understanding in the issue of forming the rates for electric and heat power the JSC “ Far Eastern Generating Company” has reached with the authorities of regional regulating bodies in Khabarovsky krai and in the south of Republic of Sakha (Yakutia). The losses of the energy company are basically occurred because of actions of such bodies  in the south of Primoriye and in JAO (Jewish Autonomous Oblast). The JSC “FEGC” has already claimed the disputes to regulating authorities of Primorsky krai and Jewish Autonomous Oblast in part of rates approved for current, 2009, year. The FST has already accepted the correctness of energy companies in the differences with JAO and bound the regional committee for tariffs and prices to repay to JSC “FEGC” in the further period over 48 million roubles. The differences with Department for tariffs and rates of Primorsky krai is under expertise now.