3.2.8 Tariff Policy

Electricity transmission tariffs

In 2024, the regulators applied the return on invested capital method (RABregulatory asset base) to Sverdlovenergo and method of long-term indexation of the gross revenue requirement (INDEX) to Permenergo and Chelyabenergo.

Uniform (“pie”) tariffs comprise expenses of all grid companies operating in the region to be annually prescribed for the next year during the long-term regulation period. Pursuant to existing tariff regulation laws, a gross revenue requirement is subject to annual fine-tuning, adjusted for changed real and target calculations, executed investment program and achieved reliability and quality of service indicators. Uniform (“pie”) electricity transmission tariffs to be enforced in 2024 were approved by the tariff decisions of the relevant regional regulators^[20-22].

Uniform (“pie”) electricity transmission tariffs for 2024 were set by the regulators within the FASFederal Antimonopoly Service-approved maximum and minimum tariff limits.

PAO Rosseti Ural’s GRRgross revenue requirement composition and its YoYyear on year changes

Key factors that changed the “pie” gross revenue requirement in 2024, RUBruble million

Analysis of revisions of the average electricity transmission tariff (adjusted for net supply on generator voltage level), RUBruble/ kWhkilowatt-hour*

Technological connection fee

Pursuant to the Guidelines^[23] the regulators of the Perm, Sverdlovsk and Chelyabinsk regions have set the 2024 standardized tariff rates, privileged connection rates per 1 kW capacity and connection fee formulas. 2024 connection rates are approved by the regional regulators^[24-27].

Rates for individuals with maximum 0-15 kW capacity inclusive (incl. previously connected capacity at the point) to be connected to 0-0.4 kV grid facilities, provided that the distance between the boundaries of an applicant’s land plot and nearest grid facilities of required voltage, owned by the gridco to which an applicant submitted its request, does not exceed 300 m in urban areas (cities and small towns) and 500 m in rural areas and microgeneration facilities:

Besides, the connection fee for underprivileged citizenry (low-income citizens, veterans, disabled people, etc.), provided that the distance between the boundaries of an applicant’s land plot and facilities of 0-0.4 kW voltage, owned by the gridco to which an applicant submitted its request, does not exceed 300 m in urban areas (cities and small towns) and 500 m in rural areas, was set at RUBruble 1,119 / kW, incl. VATvalue-added tax (Perm and Sverdlovsk regions) and RUBruble 1,114.07 / kWhkilowatt-hour, incl. VATvalue-added tax (Chelyabinsk region).

On the whole, increased 2024 average connection cost per maximum capacity unit (“last mile” activities, executed contracts), compared to 2023, was due to increased standardized tariff rates, incl. 1 kWhkilowatt-hour requested capacity, in 2024 (increased cost of connection), as well as reduced connected capacity for applicants requesting 0-150 kW. The primary factor of grown average rate S1 (arrangement and technical activities per one contract) is indexation of its components.

Besides, the regulators approved fees for connection to the Company’s networks under individual project, the cost computed with the use of approved standardized tariff rates pursuant to the guidelines. All in all, there were 25 resolutions on setting individual rates worth RUBruble 1,991 million, net of VATvalue-added tax. Also, RUBruble 908 million planned expenses related to connection, not included into the connection fee, were added into the GRRgross revenue requirement of transmission tariffs.

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