We believe the Russian Government's decision is in line with its plan to optimise the Russian electricity grid infrastructure, including through restructuring the transmission and distribution electricity grid sector.
The Government expects that consolidating the management of the transmission and distribution electricity grids should help raise the overall efficiency of the electricity distribution sector in Russia, synchronize investment programmes and ensure a more efficient regulation of tariff revenue. It is also expected to solve the ‘last mile’ issue, which is related to cross-subsidisation between the transmission and distribution grids.
Furthermore, the Government is in the planning stages of implementing a unified technological policy for the electricity grid sector to enhance reliability of electricity distribution and raise the quality of electricity supply.
We will keep the market informed of any further developments.