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Technological connection

The procedure for technological connection implies actual connection of energy receiving devices (power installations) of Applicants to electric grids with actual supply (receipt) of voltage and capacity on energy receiving devices of the Applicants (fixation of the switching device in “On” position).

The service of technological connection of energy receiving devices of Applicants (legal and physical persons) to electric grids is provided:

  • in case of connection of newly launched energy receiving devices;
  • in case of increase of connected capacity of previously connected and reconstructed energy receiving devices;
  • in case of changing the category of reliability of energy supply, types of production activities which do not result in reviewing the size of connected capacity but modify the external energy supply scheme.

The number of applications received in 2012 grew by 18% compared to 2011 and the capacity increased by 304.4 MW.

Technological connection services are provided under the Technological Connection Agreement in accordance with the effective Rules of Technological Connection to Power Receiving Devices of Electricity Consumers, Energy Generating Facilities and Electric Grid Facilities Owned by Grid Organizations and Other Entities to Electric Grids No.861 (as revised by Resolution No.1354 of the RF Government of December 20, 2012).

Among large projects of 2011 is technological connection of power installations of the housing utility infrastructure of the administration of the town of Monchegorsk, the connected facility: DS-4N, maximum capacity 15 MW, allowing reserve electricity supply to Monchegorsk from substation No.11B 150/10 kV with a power reserve. Technological connection of transformer substation No.9A 2×4 MVA SS 35/6 kV (applicant: Ministry of Defense of the RF) and energy installation of wood processing plant of maximum capacity 6 MW (applicant: LLC Ustiya Forest Industry Complex) was also carried out in 2011.

In 2012 we carried out technological connection of the following large consumers: in the first quarter of the year in the Murmansk oblast the first-order technological connection of the main step-down substation 150/35/6 kV (applicant: CJSC North-Western Phosphorous Company) with the total capacity of 8 MW was carried out. In the second quarter of 2012 we carried out technological connection of CCGT-110 kV of the Vologda CHPP (applicant: JSC TGC-2) with the total capacity of 110 MW in the Vologda Region as well as technological connection of the Bayandyskoye Oilfield (applicant LLC LUKOIL-Komi) with the total capacity of 3 MW in the Republic of Komi.

Technological connection volume dynamics

Number of applications for technological connection received

Number of agreements for technological connection made

Number of agreements for technological connection performed

Consumers of privileged category

In the last three years the tendency of a substantial increase in the number of applications for connection of facilities with capacity of up to 15 kW is observed. This growth is mainly due to the amendments made to the Rules of Technological Connection which became effective in May 2009 with regard to connection of privileged consumers: individuals of up to 15 kW, whose payment is determined by the Resolution of the RF Government in the amount of RUB550 for technological connection to electric grids of voltage class of 20 kV inclusive, if the distance from the border of the applicant’s plot where the connected energy receiving devices are located to the electric grids of a required voltage class does not exceed 300 meters in cities and urban-type villages and 500 meters in rural areas.

We perform obligations imposed on us and carry a considerable social load. When carrying out technological connection of privileged consumers of up to 15 kW for RUB550 we defray to expenses exceeding this amount substantially which result in the shortfall in income.

We understand the difficulty of this situation and conduct a close dialogue with the executive authorities of the RF on the issue of introduction of limitations on the privilege. The optimal solution could be the determination of a frequency or a time period during which one applicant may use the privilege to apply for technological connection. Taking into account the possibility of breach by the applicant of his/her obligations we could be granted a right to terminate technological connection agreements unilaterally.

Making proper decisions will allow avoiding the abuse of privilege and contribute to development of small and medium-sized business in the regions owning to privileged technological connection.

In 2012 92% of all applications for technological connection were received from applicants of up to 15 kW (privileged consumers) for the total capacity of 302.6 MW. The number of applicants for privileged technological connection increased by 23.5% compared to 2011 and required capacity grew by 31.1%.

Electricity tariff formation system

Payment for electricity transmission services is made in accordance with a network tariff which is calculated pursuant to the Fundamentals of Pricing, Rules of State Tariff Regulation approved by Resolution No. 1178 of the RF Government of December 29, 2011 and Methodical Guidance for Calculation of Regulated Tariffs and Prices for Electric Power in the Retail Market approved by Order No. 20-e/2 of the Federal Tariff Service of Russia of August 6, 2004.

Tariffs for electric power transmission services in the reporting period for all branches of IDGC of the North-West were approved on the basis of established long-term parameters. For Vologdaenergo, Novgorodenergo and Pskovenergo and, from November 01, 2012, Karelenergo branches the approved long-term regulation parameters were calculated using the RAB method.

The substantial difference in tariff rates or services between the regions of activity of IDGC of the North-West is explained by different proportions of consumers by voltage levels. Branches, in which low-voltage electric grids prevail, such as Arkhenergo, Komienergo and Pskovenergo, have higher tariffs due to higher expenses on maintenance of electric grids compared to branches with dominating high-voltage grids, such as Vologdaenergo, Karelenergo, Kolenergo, Novgorodenergo.

776.07 RUB per MW/h.

The average estimated tariff for electric power in 2012

Tariff information

Company/branch Average estimated tariff in 2012 per MW/h Average estimated tariff in 2011 per MW/h Average estimated tariff in 2010 per MW/h 2012/2011 increase,% 2011/2010 increase,%
Arkhenergo 1,416.06 1,146.01 1,041.51 23.57% 10.03%
Vologdaenergo 730.68 710.11 616.30 2.90% 15.22%
Karelenergo 534.37 547.64 529.64 −2.42% 3.40%
Kolenergo 451.62 478.35 431.85 −5.59% 10.77%
Komienergo 1,128.89 1,147.81 941.94 −1.65% 21.86%
Novgorodenergo 917.32 891.87 774.19 2.85% 15.20%
Pskovenergo 1,690.58 1,687.39 1,467.30 0.19% 15.00%
IDGC of the North-West 776.07 763.99 681.78 1.58% 12.06%

In 2013 tariff regulation was carried out in accordance with the scenario conditions determined in the Forecast of Social and Economic Development of the country. In 2014 tariffs for electric power will be fixed both for individuals and industrial companies, thus, tariff indexation for electric grids will be carried out only in July 2015 by the 2014 inflation level.


Considerable cross-subsidization volumes in the Company’s tariff structure result from the policy carried out by regional authorities: tariffs are regulated so that to make them affordable for the population while large industrial consumers have to pay the tariff which is higher than economically reasonable. This scheme has existed in Russia since 1990s when the policy was aimed at retaining most affordable prices to avoid social fallouts.

However, today this subsidization cannot be expected to be able to retain artificially low tariffs in the long-run. A way to solve this problem will depend directly on the quality of state regulation of the distribution grid companies. In 2013 the RF Government plans to adopt a resolution on introduction of a social consumption rate aimed to liquidate a portion of cross-subsidization. This social rate is planned to be introduced in 2012.

The mechanism of the social rate implies establishment for consumer of a reduced tariff for a nominally normal power consumption volume and an increased rate tariff for all volume in excess of this limit. In the context of the social load it is very important that socially vulnerable segments of the population are not harmed as a result of such measures.