FGC UES encouraged builders and upset power engineers

Chairman of the Board of the Federal Grid Company (JSC FGC UES) Oleg Budargin does not rule out the abolition of fees for technological connection to power grids. St. Petersburg power engineers say that existing tariffs do not cover their connection costs, and if the fee is abolished altogether, electricity tariffs will most likely increase. But the initiative is guaranteed to be supported by St. Petersburg builders, whose official expenses alone on connecting to networks last year amounted to about 6 billion rubles. True, they do not promise a reduction in real estate prices if the connection fee is eliminated.

During a working meeting in Samara, Chairman of the Board of JSC FGC UES Oleg Budargin announced his intention to significantly simplify the procedure for connecting consumers to power grids, and in the future to make it completely free. “Given the mutual responsibility of network operators and consumers, I believe it is possible to achieve a maximum reduction in the cost of technical connection, and, perhaps, in the future it will become completely free. We do not pay for entrance to the store, but only pay for the goods purchased,” Mr. Budargin noted. True, the top manager did not announce any specific deadlines for the implementation of these plans.

Nowadays, technical connection services are one of the key sources of income for electric grid companies. But if Mr. Budargin’s initiative is given a go, networkers could find themselves in a very difficult situation and lose a significant part of their revenue. Thus, one of the largest network companies in the region, JSC Lenenergo, last year sold technical connection services worth 5.8 billion rubles. Therefore, network companies in St. Petersburg and the Leningrad region were not too happy about Mr. Budargin’s statement. “At the moment, within the framework of the existing economy, I do not see an opportunity to implement this idea. For electric grid companies in the North-West, as well as in Moscow, revenue from technical connection services is the most marginal share of their business. Therefore, it is better to postpone the issue of reducing the cost of this service ", says Vadim Malyk, General Director of LOESK. According to him, network companies should understand how to invest their funds in the construction of networks without paying for technological connection. “In this case, the main burden will go to the electricity transmission tariff. But this decision may have a negative impact on our consumers,” concludes Mr. Malyk. Representatives of Lenenergo have also repeatedly stated that if the connection tariff is reduced, the company will not be able to connect new users. “The current tariff does not cover our costs. Even in some cases we have to pay additionally for connecting new consumers to the networks,” they say at LOESK. General Director of RKS-Energo Mikhail Kolomytsev allows the abolition of fees for technical connection, but in this case new schemes for financing the construction of networks should appear on the market. “Either through an increase in tariffs for end consumers, or through government subsidies - direct or through an additional issue of shares of network companies. Miracles do not happen, and in any case, someone must pay for the construction,” says Mr. Kolomytsev.

But builders can definitely expect a positive effect from the abolition of fees for technical connection. “On average, in the cost of mass multi-storey housing construction, infrastructure costs are about 30 percent, in some cases 40-50 percent; the direct share of connecting to communications and networks can reach 10-15 percent. Therefore, of course, cost reductions for market operators can be very noticeable,” says Anna Mishutina, an analyst at Finam Investment Company. According to her, theoretically the rate of growth in housing prices could decrease, but one should not count on a significant effect. “The cost per square meter of housing is unlikely to decrease as a result of these measures, since at present it is mainly determined by demand. And apartments are being bought up at this price, so developers do not need to reduce prices,” says Vsevolod Shcherbakov, deputy director of the consulting department.” Colliers International St. Petersburg". The director of the department of new buildings at the Bekar Academy of Sciences, Eldar Sultanov, shares a similar opinion. “Today, the price per square meter is determined by demand, so the abolition of fees for connecting to utility networks will not affect the cost of housing. This innovation will allow the developer to reduce costs, which means we can expect the release of new projects,” said Mr. Sultanov.

Boris Gorlin,

Ekaterina Plotnikova

Network workers will be disconnected from technical connections