78
- improvement in turnover of working assets due to changes of contractual relationships with consumers.
Material events/factors that may have the largest negative effect on the possibility for the Issuer to
achieve the same or higher results in the future, as compared with the results achieved in the latest
accounting period:
Material events/factors that may have the largest negative effect on the possibility for the Issuer to
achieve high results in the future are as follows:
- Unfavourable tariff decisions, including establishing tariff levels insufficient for the financing of
necessary expenditures on technical reconstruction, modernization, and further construction of the Issuer's
facilities;
- High capital intensity and long implementation periods for projects on HPP construction. The projects
for hydro power plant construction form the basis for the Issuer’s development. However, they are capital-
intensive and are characterized by the long periods of their implementation; in addition, expenses on
construction of electricity grids for the supply of electrical power generated by HPPs are in many cases also
extremely large. Therefore, these projects, as a rule, are characterized by low economic efficiency;
- Uncertainty of the demand for electrical power, both due to decrease in investment in construction of
new production facilities, and due to closure of ineffective operating hydro power facilities, to which the
functional generating capacities were oriented;
- Failure to adopt the required regulatory acts in the field of electricity and capacity markets. Hydro
power engineering can currently be viewed as one of the means of controlling the growth of electricity tariffs
and prices
in the crisis conditions;
The Issuer assesses the probability of occurrence of these factors as average.
Material events/factors that may improve the results of the Issuer’s activities, the probability of
their occurrence and their duration:
Material events/factors that may improve the Issuer’s activities include factors influencing the sector as a
whole. In order to function more effectively in new conditions, the Issuer is required to:
- Implement the developed long-term Program for Complex Modernization of the Issuer, including
programs providing for the increase in the installed capacity, manoeuvrability and control of equipment
operational modes, technological process automation, and the use of new technologies, allowing avoidance of
dangers connected with the wear and ageing of equipment, reducing the threat of accidents, and raising the
efficiency of operation of existing facilities;
- Address the tasks faced by the Issuer’s management: on increasing operating performance, quality of
corporate management in view of the necessity to meet the requirements of the investment community to public
companies;
- Stimulate the demand of large consumers for electrical power generated by HPPs, joining strategic
alliances with federal companies interested in the implementation of cluster development
projects;
- Assist in development of the organisational chart of regional development management — corporations
for regional development;
- Apply long-term tariff regulation using the return on investment approach in non-price zones and
isolated power districts, and to that effect be fully engaged in the FAS of Russia’s development of additional
methodology instructions concerning price (tariff) formation in technologically isolated territorial energy
systems according to the return on investment method within the implementation of the Regulation of the
Government of the Russian Federation No. 1178 dated December 29, 2011.
- Assist in practical application of the procedure for conclusion of bilateral agreements between new
generating facilities and consumers at a price not exceeding the threshold level of adjustable prices/tariffs within
the approved Rules for Retail Electricity and Capacity Markets.
- Assist in adopting the rules for capacity markets and system services, ensuring adequate compensation
for the contribution of PSHPPs to system reliability and safety;
- Assist in adoption of enactments focused on ensuring state support of RES use and RES projects
payback in non-price and isolation zones of the electricity and capacity market.
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The likelihood of the first two events/factors is assessed by the Issuer as high, and that
of the remaining as
medium.
4.8. Competitors of the Issuer
Apart from RusHydro PJSC, the major part of generating assets of the country is concentrated in several
large holding companies
No.
Holding company
Generating companies that are members of the holding
1 State Corporation «Rosatom»
SC «Rosenergoatom Concern»
PJSC «PPIM CU»
SC «SCC»
СJSC Vetro OGK
2 PJSC «INTER RAO»
SC «INTER RAO ― Electric Power Plants» OJSC
(includes assets of the former JSC «OGK-1» and JSC
«OGK-3»)
SC «TGC-11»
LLC «Bashkir Generation Company»
3 SC «EuroSibEnergo»
PJSC «Irkutskenergo»
PJSC «Krasnoyarskaya HPP»
LLC «Avtozavodskaya TPP GAZ»
SC «EnSer»
LLC «Novokondrovskaya TPP»
4 LLC «Gazprom Energoholding»
JSC «TGC-1»
PJSC «Mosenergo»
PJSC OGK-2 (includes
assets of the former JSC
«OGK-2» and JSC «OGK-6»)
PJSC «MIPC» (Moscow Integrated Power Company)
5 PJSC «T Pluse»
JSC «TGC-5»
JSC «TGC-6»
JSC «TGC-7» (JSC «Volga TGC»)
JSC «TGC-9»
6 JSC «E.ON Russia»
JSC «OGK-4»
7 PJSC «Enel Russia»
JSC «OGK-5»
8 LLC «SGC»
JSC «Kuzbassenergo» (JSC «TGC 12»)
SC «Yenisei TGC» (JSC «TGC 13»)
SC «Krasnoyarsk TPP-1
Kansk TPP»
SC «Nazarovo GRES»
SC «Kemerovo generation»
SC «Barnaul TPP-3»
SC «Barnaul generation»
SC «Kuznetsk TPP»
SC «Novo-Kemerovo TPP»
9
PJSC «LUKOIL»
LLC «LUKOIL-Kubanenergo»
LLC «LUKOIL-Rostovenergo»
LLC «LUKOIL-Astrakhanenergo»
LLC «LUKOIL-Volgogradenergo»
LLC «LUKOIL-Ecoenergo (TGC 8)»
LLC «LUKOIL-Stavropolenergo»
10 LLC «RU-COM»
SC «SIBECO» (former CSC «Novosibirskenergo»)
SC «Biyskenergo»
11 Sintez Group
JSC «TGC–2»
12
Onexim Group
PJSC «Kvadra» (TGC–4)
LLC «Shekinskaya GRES»
Kursk TPP-4
13
JSC «Fortum»
JSC «Fortum» (TGC–10)
14
JSC «RZHD» (Russian Railways)
P JSC «TGC-14»
15
JSC «TAIF»
JSC «TGC-16»