Energy warns of rising energy costs for an increase in fees for river hydropower plant – BBC

Energy opposed increasing taxes for hydroelectric power plants for use of water resources within the federal government, for the development of river transport. As they say in a letter to Deputy Energy Minister Vyacheslav Kravchenko, the Ministry of Transport (copy of the document is available “Gazety.Ru”), increased fees for water use can lead to an increase in electricity tariffs for the population, and an increase in the value of cross-subsidization when prices rising electricity for the population is constrained by increasing tariffs for the industry.

The idea of ​​”compensation payment” for HPP belongs to the Ministry of Transport – Office proposes to establish a fund to maintain the river condition of waterways. This fund will, on the idea of ​​the Ministry of Transport, work similar to the road sector. The sources of financing planned to excise duties and infrastructure of river users, among which appear, and hydroelectric power plants. The need to create a fund in the Ministry of Transport explained that funding for maintenance of inland waterways in satisfactory condition requires a lot of money (from 18 billion to 21 billion rubles.), Than those allocated to the present time (in the current year – about 13.5 billion rubles )..

Because of the underfunding of the past 25 years, the length of inland waterways in Russia decreased by 30%, from 67 th. To 48 th. Km.

However, the Ministry of Energy noted that the electric grid complex in Russia is “in a difficult financial and economic situation” and “extra load on the power grid companies will only aggravate the situation and will require additional support from the budget of the state system.” A water tax for hydropower plants already grow in 2025 almost 5 times the level of 2014, indicates the director of “Council of Energy Producers’ Association Igor Mironov

The main negative effect of the new collection -. Electricity price increase .

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In the case of the introduction of “compensation payment” for HPP and increase water charges at 4 billion rubles. year tariff burden on the population can grow to 0.6-0.8 bln. per year, according to the ministry.

«Companies will be forced to compensate for the expenses and it will fall on the shoulders of consumers. Generating companies and so demonstrate a minimum profit “, – Mironov assured. According to him, the government’s influence on the activity of the generating companies associated with new costs for them, entail electricity prices. Now the power plant, on the contrary, restrain electricity prices. In the first price zone, where the share of hydroelectric power plants in the energy balance of about 15%, the price now stands at more than 1,300 rubles. per MWh, and in the second price zone, where the hydroelectric share of more than 50%, -.. less than 800 rubles, and sometimes drops to 300 rubles

Difficulties given collection may occur in the struggle with the problem of cross subsidy. As noted in the Ministry of Energy, the amount of cross-subsidization already is 205 billion rubles. Over the past five years, this figure increased by half, to 133 billion rubles. To reverse the trend and begin to reduce the amount of cross-subsidies – one of the main problems in the energy sector, as reflected in the disposal decision and instruction of the government in 2013, 2014 and years 2015, but taking into account the estimated tax will not be able to do it

In addition. , the negative effect of “compensation payment” will have an impact on the investment activities of the companies, including Russia’s largest hydropower plant owner – “RusHydro” (more than 66% of the shares owned by the state).

In the Ministry of Energy noted that the increase in fees for water use HPP in favor of river transport will reduce the company’s profits at 3.2-3.4 bln. in year. In 2015, “RusHydro” has already reported a decrease in net profit by 2.2% to 30.02 billion rubles.

The head of the Energy Development Fund Sergey Pikin indicates that the collection will be reflected in the financial performance of hydro companies. This will entail difficulties with the financing of investment programs. To attract additional borrowings for these purposes will also be difficult, since the aspect ratio “RusHydro” debt to EBITDA of 3.1 is already (as of January 2016), which is above the level of “acceptable from the point of view of financial stability.”

In doing so, the investment “RusHydro” projects, in some cases, show appreciation, since the original estimate of construction projects in the Far East did not take into account the need for the construction of off-site facilities. This may be an additional burden on the budget. Victims may, and investment projects “Evrosibenergo”, which is a large-scale modernization of the Siberian hydropower plant. According to “Gazety.Ru”, the establishment of the River Fund could be considered at the presidium of the State Council on Monday.