The government’s tariff policy needs to be amended in order to develop the energy sector in the Far East
In terms of setting tariffs, I think it’s inevitable for the market in the Far East. There is no other way. If this is not done, RusHydro’s balance sheet will not be able to sustain such a huge energy system. This is a model based on calculation. That means mathematics, economics – exact sciences which you can argue with, but not with much success — Viktor Khmarin, Chairman of the Management Board, General Director, RusHydro.
Regarding tariffs – we are in a very bad situation due to the discrepancy between coal tariffs and prices. Take South Yakutia, for example. There, the Far Eastern Generating Company has had to pay almost double for coal, and this has not been planned for at all. Ensuring that our power plants have a guaranteed supply of coal is also a very serious issue — Aysen Nikolaev, Head of Sakha Republic (Yakutia).
Market pricing will be required to a large degree in this area. We need to strike a balance between increasing prices for the consumer, and protecting demand, which is currently elevated in the Far East among residents of advanced special economic zones and overall in the Far Eastern Federal District — Vitaly Korolev, Deputy Head, Federal Antimonopoly Service of the Russian Federation.
If tariff restrictions are imposed from above, and in the meantime we are forced to pay unrestricted prices for around 11 million tonnes of coal per year, then we are not talking about investments, on constructing new hydropower plants. We just don’t have the requisite level of reliability — Viktor Khmarin, Chairman of the Management Board, General Director, RusHydro.