The Administration of the Komi Republic and IDGC of North-West plan to sign a Cooperation Agreement.
The first meeting of IDGC of North-West’s General Director Alexander Kukhmay with the Head of the Komi Republic Vyacheslav Gaizer took place in Syktyvkar. Taking part in the meeting were Director of the branch “Komienergo” Ivan Medvedev and IDGC of North-West’s Deputy General Director Valery Mamontov. The main topic of the meeting was discussion of the issue of long-term tariff formation in the region.

Alexander Kukhmay told about today’s state of affairs in the energy industry and necessity to attract investments into the grid infrastructure which will allow to create new production sites in the republic. RAB method will allow to increase “Komienergo’s” investment program by RUB3.3 billion without increase in tariffs in comparison with the long-term parameters method. Moreover, RAB implies a “smoothing” mechanism in order not to allow for drastic increases in tariffs. In opinion of IDGC of North-West’s management, it is RAB method that can allow for implementation of investments required to develop the economy of the Komi Republic.

In the course of the meeting the parties came to the opinion that it was necessary to sign the Agreement between the administration of the region and the management of IDGC of North-West. In opinion of the parties, the Agreement can include issues of tariff regulation, realization of investment programs, as well as an opportunity of creation of a grid company which would unite small grid companies existing today in the territory of the republic.

For today, there are 23 grid companies in the Komi Republic besides IDGC of North-West’s branch “Komienergo” which, in opinion of the republic’s management, do not provide reliability and quality of electricity supply of consumers to the right degree. Association of grid assets will considerably minimize expenses for their maintenance, lower operational costs and raise reliability of electricity supply, the managers said.

Within the framework of a two-day business trip to the Komi Republic, IDGC of North-West’s General Director Alexander Kukhmay also met with the Minister for Industry and Energy Sector of the Komi Republic Konstantin Maltsev.