Page 161 - RusRPTNov21

applications from large to small electricity consumers, and the company is to begin the process of signing contracts with them. Moreover, given elevated demand, negotiations are also underway with other consumers for an additional 10bn kWh, RusHydro said.
RusHydro Izvestia reports that that the Ministry of Ecology has proposed raising the water tax in Russia 2.5 times by 2025. According to the article, this could cause RUB 50bn of additional costs to HPPs in 2022-25, although the proposal is opposed by the government bodies. If the proposal is adopted, this might cost RusHydro an additional RUB 22bn in EBITDA (excluding Boguchanskaya HPP) in 2022-25 (RUB 4.4-6.7bn annually, 3-4% lower than with the current tax outlook) with RusHydro accounting for 50% of generated hydro production in 2020, if excluding Boguchanskaya HPP (59% if including it). At the same time, our initial channel check shows that most of the government bodies (Ministry of Energy, Ministry for Economic Development, Property Fund) are against the proposal, so the chances of it becoming law are quite low, in our view.
RusHydro released its 9mo21 operating results. Total electricity generation was down 3.4% y/y to 96,421GWh (-3.5% y/y for HPPs, -3.0% for TPPs), while the third quarter of 2021 implied 10.1% y/y growth for HPPs vs. a 12.2% y/y reduction for TPP. That led to 6.1% y/y growth for the company overall. This was driven by the recovery in demand as well as water inflows. Total heat output improved 4.2% y/y to 19,931 '000 GCal, with a 4.9% y/y reduction in the third quarter of 2021. The group's total supply volumes improved 3.1% y/y. The company expects water inflows to be at or above the normal level, except for the Volga-Kama cascade, where levels could be below the norm or close to it.
ROSSETI North-West (MRKZ) published its 3Q21 RAS results, 28 October. MRKZ’s revenue was down 0.9% y/y to RUB9.7bn during the quarter despite the 6.2% y/y growth in electricity consumption to 21mn MWh in UES of North-West. The main reason behind the minor decline on the top line was the 84.8% y/y drop in connection fees to RUB83mn, while distribution revenue was up 2.9% y/y to RUB9.4bn during the quarter. COGS was up 1.4% y/y to RUB9.7bn. The company’s loss from sales fell from RUB10mn in 3Q20 to RUB238mn in 3Q21, while its net loss reached RUB486mn in 3Q21 vs. RUB329mn in 3Q20.
ROSSETI Moscow Region (MSRS) published its 3Q21 RAS results yesterday, 28 October. MSRS’ revenue was up 11.2% y/y to RUB41.7bn during the quarter, while distribution revenue was up 11.3% y/y to RUB38.8bn and connection fees were up 30.9% y/y to RUB2bn. COGS was up 9.2% y/y to RUB37.3bn. The company’s profit from sales was up 33.6% y/y to RUB4.3bn and the bottom line was up 73.1% y/y to RUB3.7bn during the quarter. Electricity consumption in 3Q21 surged 9.7% y/y to 25.7mn MWh in the Moscow Region, which is part of the reason for the growth seen on the company’s top line.
ROSSETI Volga (MRKV) reported its 3Q21 RAS results yesterday, 25 October. MRKV’s revenue was up 10.4% y/y to RUB15.7bn during the
161 RUSSIA Country Report November 2021 www.intellinews.com