Adjustment of the transmission tariffs

The tariffs are adjusted under the RAB methodology, which provides for the possible redistribution of tariffs and resulting gross revenues within the 5-year regulation period between 2010 and 2014.
The RAB Methodology Guidelines approved by FTS in June 2008 provides that the Regulator is entitled to redistribute gross revenues of regulated businesses between years within a single regulatory period.
According to the FTS decision, the tariff growth for the remaining 9 months of 2011 compared with 2010 will be 15.7 percent for the republics of North Caucasus and Stavropol Region, and 26.5 percent for all other regions of Russian Federation. The changed tariffs come into effect from April 1, 2011.
The Regulator has ruled that during the remaining 3 years of the regulatory period the tariffs will continue to grow steadily at a 26.4 % in 2012, 26.3 % in 2013 and 26.3 % in 2014 growth rates.
Andrey Kazachenkov, Chief Financial Officer of Federal Grid, commented:
“It is important that these changes will not affect the overall planned tariff revenues for the regulatory period from 2010 to 2014, and the minor adjustment is made within the agreed RAB regulatory framework. Also redistribution of the tariffs within a 5 year regulation period will not affect the scope and implementation terms of the approved investment programme, including our flagship projects of smart grid and network modernization”.