The Russian Justice Ministry has endorsed a procedure for the calculation of rates of return on invested capital for the conversion to a RAB-based tariff-setting system, an MRSK Center spokesperson told a press conference. The rates of return on the original capital are set at a respective 6%, 9% and 12% for each year of the initial regulatory period, scheduled to take three years. The rate of return on newly-invested capital is fixed at 12%.
The rates of return were anticipated beforehand. The Regional Energy Commissions (REC) are entitled to set higher rates of return than those approved by the Federal Grid Company and the Justice Ministry. Notably, the Perm regional REC has already done so. The fact is that a 12% rate of return cannot be regarded as a market rate in view of the ongoing financial crisis. We are upbeat about the adoption of the rates in line with expectations, which reduces the risk that an alternative option for the transition to an RAB-based tariff-setting system could be chosen.
0.569
0.073
