Grid Connection Tariffs

Federal, regional, and departmental legal and other regulations governing pricing for the calculation of the grid connection fee are shown in the “Grid connection” section.

Amount of grid connection contracts made in 2014 at standardized rates of grid connection fee tariffs, rates per capacity unit, and under individual projects

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The rates of the grid connection fee as set by the regulatory authority for 2014

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Amount of grid connection contracts made in 2014 at standardized rates of grid connection fee tariffs, rates per capacity unit, and under individual projects

The existence of approved standardized fee rates made it possible to reduce the number contracts made at individual tariffs. In 2014, the number of applicants with whom contracts were made at individual tariffs for the whole of JSC IDGC of the North-West was 154. At the branches, the share of such contracts varies from 1% to 10% save for Kolenergo where 23% of grid connection contracts were made contracts at individual tariffs.

The standardized rates of the technical fee by the branches of the Company were established depending on the type of the used materials or/and method of work with division by voltage levels or/and amount of connected maximum capacity. The materials and work methods are different at different branches of the Company.

In 2013, the standardized S1 rate was adopted as a total for grid connection operations. In 2014, the S1 rates was approved by the regulatory authorities primarily with division by operations that are stipulated by in clause 16 (save for subclauses b and c) of the Systemic Guidelines for Determining the Fee for Grid Connection to Electric Grids.

The complete set of tariff resolutions according to adopted standardized rates for 2014 is shown on the official website of the Company individual information disclosure standards.

The fee for Applicant applying for grid connection of energy-receiving facilities with maximum capacity not exceeding 15 kW (and including, in view of the capacity that was connected earlier in this capacity delivery point) is no more than 550 rubles, and if properties of reliability category 3 are connected (one power source) provided that the distance from the borders of the Applicant’s land plot and the electric grid facilities on a 20 kV voltage level (and including) of the grid company voltage level, which the Applicant needs, is no more than 300 meters in cities and urban type settlements and 500 meters in rural areas.

Small and medium businesses may at their discretion enjoy a 95% interest-free payment deferral where they pay for the grid connection in equal quarterly installments for three years after signature of the grid connection protocol by the parties.

Information on the law amendments as concerns grid connection of consumers under 15 kW, number of applications filed and contracts made, and raising the availability of grid connection for consumers, and the problems that JSC IDGC of the North-West faces when it makes such contracts is shown in the “Grid Connection” section.

In 2014, in the resolutions adopted by the regular and in the investment program of the Company an as follows RUB 1,004 million excluding VAT was planned for implementation of privileged grid connection contracts. The actual implementation exceeded the target costs and amounted to RUB 1,504 million.

The grid connection fee under effective contracts amounted to RUB 90 million not including VAT, and the estimated costs of grid connection amounted to RUB 1,004 million (not including VAT). In 2014, capital investments and operating costs for grid connection of energy-receiving facilities of consumers from the ‘privileged’ group amounted to RUB 1,504 million. Therefore, the estimated costs of grid connection under grid connection contracts that were effective as at December 31, 2014 is 16.7 greater than the grid connection fee.

In the Russian Government Order dated December 29, 2011 No.1178 On the Pricing in the Area of Regulated Prices (Tariffs) in the Electricity Sector and the Russian Government Order dated December 27, 2004 No. 861 entitled The Rules of Grid connection of Energy-Receiving Facilities of Electricity Consumers, Electricity Generation Facilities, and Electric Grid Facilities Owned by Grid Companies and Other Persons to Electric Grids it is stipulated that the fee for grid connection of energy-receiving facilities with a maximum capacity not exceeding 15 kW (and including, with account taken of capacity that was connected in this point earlier) shall be set based on the cost of services of grid connection not exceeding 550 rubles.