Page 112 - RusRPTMay20

however, the reductions are less severe than in other countries.
Capex: ​The Ministry of Energy does not expect cuts of the capex programmes of RusHydro or RosAtom, seeing only a 15% slide for Rosseti. Projects, such as BAM and the TransSib in the Russian Far East, and in Crimea will be carried out, while the launch of intelligent meters is still scheduled for 2021.
Non-payments: ​The Ministry believes the peak of payment reductions could come in the summer months due to the seasonality, while the large consumer-companies have not addressed the Ministry with requests not to pay for electricity. Generators, though, have raised concerns about the decision to ban penalties until YE20 (the Ministry confirmed it could be reassessed), while noting partial non-payments due to the electronic methods of payments and requests by large consumers not to make payments.
Equipment: ​The Ministry estimates that 3GW of capacity could remain off the market due to the absence of spare parts and servicing by foreign contractors. In terms of the DPM2 programme, if the regulator sees significant delays in the supply of equipment, the launch time of DPM2 units could be adjusted.
Support: ​Utilcos said that subsidised loans are the key solution currently, while support for the population needs to be more targeted, and it is important to shorten the timing of the ban on penalties for non-payments.
Strategies: ​The Ministry is continuing to work on assessing the strategies of InterRAO, RusHydro and the dividend policy of Rosseti, though it is not the top priority at the moment, so the approval could experience some delays; however, the Ministry is going to try to finalise the assessment as soon as possible.
Export: ​InterRAO faced a 50% decrease of electricity export volumes from Russia in the first months of 2020 on the back of warm weather and COVID-19.
Profits & dividends: ​The Ministry believes that the current situation could put pressure on companies' profits and dividends, but companies will become more efficient. Meanwhile, the current situation appears to be following the Ministry’s "optimistic scenario".
Russian generating companies have written to the Minister of Energy, Alexander Novak, asking for support ​on April 6, as concerns the situation with non-payments during the pandemic. According to the gencos, the companies are providing an uninterrupted supply of energy and employing a large number of people and so can be called systemically important enterprises. At the same time, along with the measures (such as the abolishment of fines for non-payment, etc) that are currently being discussed, the companies expect an increase in non-payments, which could put pressure on them.
112​ RUSSIA Country Report​ May 2020 ​ ​www.intellinews.com