Page 190 - RusRPTMay21

pricing has been rolled out, and estimate it in the range of 2-5% to traditional energy.
The electric power output of Russian power holding Inter RAO fell by 10% on the year to 31.22bn kilowatt-hours (kWh) in January–March, the company said in a statement on Monday. Thermal power output decreased by 19.3% to 16.799mn gigacalories. Power exports doubled on the year to 5.9bn kWh in the period.
Mosenergo has reported strong 1Q21 operating results. Total electricity generation increased 11.8% y/y to 19.36bn kWh, driven by the demand growth and lower temperatures y/y. Heat production increased 35% y/y to 28.5mn GCal, also driven by the colder weather conditions.
TGC-1’s electricity generation in 1Q21 increased 11% y/y to 9.2mn MWh. The 1Q21 generation results for TPPs were stronger than those for HPPs, with TPP generation up 16.9% y/y to 5.9mn MWh and HPP generation up only 1.6% y/y to 3.2mn MWh in 1Q21. HPP generation in Russia was down 4.7% y/y overall during the quarter, but TPP generation was up 6.8% y/y overall in Russia in 1Q21. Overall consumption in Russia increased 3.9% y/y during the period. TGC-1’s heat output also boomed, rising 21.3% y/y to 10.6mn Gcal in 1Q21. Strong production results and an 11.3% y/y growth in spot electricity prices in the European part of Russia should both positively contribute to the company’s 1Q21 top line.
ROSSETI Siberia saw revenue grow at a pace of 6.9% y/y to RUB17.1bn in 1Q21, with distribution revenue up 6.8% y/y to RUB15.6bn. The company’s connection revenue and resale revenue were up 53.1% y/y and 5.1% y/y to RUB83mn and RUB1.3bn, respectively. COGS rose 6.6% y/y to RUB13.7bn, with distribution expenses up 6.5% y/y to RUB12.4bn during the quarter. As a result, profit from sales was up 10.7% y/y to RUB2.5bn in 1Q21, and net income was up 47% y/y to RUB1.5bn.
ROSSETI does not have the funds to settle the payment obligations of its subsidiaries in the North Caucasus with generation companies, Kommersant reports. RSTI’s retail subsidiaries in the North Caucasus need an additional RUB 7.4bn by the end of 2021 to fully pay for the electricity purchased from generation companies. Non-payments by its subsidiaries in the North Caucasus have been a problem for a while. Last year, ROSSETI agreed to restructure its accumulated accounts payable with generation companies, taking on an obligation to fully pay for current consumption. However, ROSSETI now says that it does not have the funds to pay for its subsidiaries’ current consumption. ROSSETI is a holding company whose primary income comes from the dividends of its subsidiaries (e.g. Federal Grid Company and regional distribution companies). The RUB 7.4bn needed to cover its payments in the North Caucasus will be a significant chunk of ROSSETI's dividend proceeds, which we estimate to be RUB c. 20bn in 2021.
190 RUSSIA Country Report May 2021 www.intellinews.com