OREANDA-NEWS. June 30, 2010. A large-scale capex program should minimize the risk of the company’s iRAB and tariffs being reduced, but may not permit the FGC to make generous dividend payments.

The Federal Grid Company of the Unified Energy System (FGC; RTS: FEES) has devised and submitted to the Energy Ministry a 2010-2014 investment program. In total, the company is about to allocate RUB 954 bn to capital expenditures over 5 years. The program was prepared with regard to the company’s scheduled transition to a 5-year RAB regulatory period. The FGC presently runs a RUB 519 bn 2010-2012 investment program. The updated 5-year capex plan is to be approved by August 15, so that the company has time to file an application to the Federal Tariff Service for RAB tariff calculation for a 5-year period.