The Russian heat market will be reformed soon. Today First Vice Prime Minister Igor Shuvalov will hold a meeting dedicated to this issue. Specialized authorities suggest that this sector's efficiency be increased. Its members say that, first of all, heat meters should be installed and municipal unitary enterprises (MUEs) should be reincorporated as joint-stock companies. Today Igor Shuvalov will hold a meeting dedicated to the problems of heat supply, informed the First Vice Prime Minister's office. Issues related to the increase of economic efficiency and creation of incentives for technical upgrading in heat supply will be discussed there. Officials from the Economic Development Ministry, the Ministry of Energy, the Ministry of Regions and the Federal Tariffs Service will participate in the meeting. The Ministry of Energy press service confirmed to the Kommersant newspaper that Deputy Energy Minister Stanislav Svetlitsky had been invited to the meeting, but added no other details. Earlier Mikhail Slobodin, President of IES-Holding, had said in Nizhny Novgorod that the meeting would be dedicated to the project of the heat supply system reform taking into account the increase in the tariff regulation term from one year to five years. He also said, that, in particular, IES suggested that heat consumption be metered and penalties be introduced for those customers who would not use meters (similar to electric and water meters). Besides, it was suggested that MUEs, which now own the heating network infrastructure, should be reincorporated as joint-stock companies. Mr Slobodin also said that their management might be transferred to private investors on concessionary terms. "The total introduction of the energy saving system will reduce our actual revenue. However, the creation of a proper heat supply system will have a favourable effect on us - we will be able to increase our efficiency in three-five years",- he said. According to the IES head, the reform of heat supply will be beneficial to heat consumers - due to increased efficiency of the system they will not have to pay for losses in networks, which are now included in tariffs fixed by the Federal Tariffs Service. "It may have an effect on forecasts and cost of debt financing attraction as soon as in a year", - said Mikhail Slobodin. Investments in heat generating assets seem to be more risky than investments in electric energy assets as the system of heat supply has not been reformed yet. "Investments will flow in when the rules of the game become clear. It would be fine if municipal assets are transferred to private owners who will ensure required investments. The most important thing we may rely upon in the near future is at least to recover the money invested", - says Managing Director of Halcyon Advisors (which holds 7% in TGC-4) David Herne. However, he thinks that incomes should not be expected in the near future. A representative of Prosperity Capital Management (which holds stakes in TGC-2, about 18% in TGC -4 and controls TGC-6 jointly with IES) Roman Filkin says that heat energy transportation and distribution are also very important for the market participants. "The most vital issue that will be discussed at the meeting is the introduction of a double-rate tariff for heat energy", - said a company operating on the heat market to the Kommersant newspaper. So far such tariffs have been introduced for electric energy only. However, Mikhail Slobodin acknowledges that the reform will not be carried out fast, as adoption of a law on heat supply is required. And the head of IES does not expect that this law will be adopted before the next year's autumn session of the State Duma. |
