OREANDA-NEWS. April 17, 2007. In accordance with Federal Law “On State Tariff Regulation for Electrical and Heat Energy in RF” requirements, the fee for new connections for 2007 including investment component is approved by local regulating authorities of regional network companies in the IDGC service area by new RF Government decree #168 of March 21, 2007, reported the press-centre of  JSC “IDNC of the Center and North Caucasus”.

Orel region tariff service approved a new rate for new connections to the JSC “Orelenergo” networks. It varies from 4703 up to 9387 rubles for kW for natural persons and legal bodies according to required capacities. On the other hand, the fee changes did not influence the natural persons who planned to connect this company’s networks. If the required capacity not exceeds 15kW and the load condition is municipal, the tariff will be 550 rubles for one new connection.

Such fee level will allow JSC “Orelenergo” to meet the technical conditions on the customers’ applications, to accumulate investments and direct them for development and capacity increase of electric networks. Due to including the investment component to tariff, the company will be able to comply with customer’s demand for connection and will not be impediment for regional economics and infrastructure development.

As previously stated, the problem of adding the investment component to tariff was discussed on different levels from summer of 2005.

JSC "IDGC of Center and North Caucasus” specialists jointly with FTS, FAS, RAO “UES of Russia” and FNC representatives worked out alterations to RG Government Decree “On Approving the Rules of New Connections of Power Receiving Devices for Natural Persons and Legal Bodies”, “On Pricing electrical and heat Energy in RF” and to Instructional guidelines on new connections fee determination. According to design changes while determining the fee for new connections, the expanses for building and reconstruction of power network units for customer connection are included, otherwise, the fee for new connections will include investment component for networks development. In furtherance of made alterations, the JSC “IDGC of center and North Caucasus” will be able to increase amount of finance received as the fee for new connection up to 2,912 mld rubles in 2007, and to increase volume of investments.

Apart from Orel and Kostroma region, the fee for new connections including investment component in 2007 is approved in Kaluga, Rayzan, Astrakhan, Tver, Ivanovo, Rostov, Belgorod and Nizhny Novgorod regions. The average tariff with investment component in companies of JSC “IDGC of Center and North Caucasus” service area equals 7000 rub./kW.