Andrey Ryumin discourages investors from power grids

The merger of Rosseti and FGC does not benefit the state company, it is turning into another inefficient state monster that slows down the economy, sucks money from businesses and citizens, and loses confidence. Here, the investors of “Rosseti” filed claims against the company in arbitration courts for 20 billion rubles. They demand early redemption of previously purchased bonds of the company, which they are entitled to in connection with the reorganization and merger of Rosseti and FGC. But Rosseti is in no hurry to buy back its bonds in the hope of reducing the volume of claims and the difficulties that investors will face when collecting their money through the courts.

Poptuno, the united company is conducting an additional issue of shares in favor of the Federal Property Management Agency. As a result of the accession of regional organizations, its authorized capital should grow to 1.56 trillion rubles, with the state’s share being 75%. How this will affect the effectiveness of the new structure is unknown, but now Rosseti is not keeping up with the industry.

Another wave of lawsuits (from consumers) and fines from the Federal Antimonopoly Service is associated with an increase in tariffs for technical connection to power grids and violation of connection deadlines. Only at IDGC of Urals, JSC (part of the structure of PJSC Rosseti), for 5 months, the amount of fines amounted to 33.3 million rubles, JSC Rosseti Tyumen was fined 30 million. increased by 17% year on year. “Rosseti” in response to complain about the lack of funds and the fact that the cost of the work is many times higher than their actual cost.

Litigation continues between Rosseti and telecom operators, who are dissatisfied with the rising cost of access to infrastructure. The Association of Small Operators of Russia notes that due to the lack of a definition of the term “access point”, electric grid companies unreasonably increase the cost of their services. The “tariff race” helps the company increase its profits, but at the same time, money for upgrading the network infrastructure will not be taken from profits, but, as usual, from investors and consumers. For example, the 260 billion necessary for the modernization of the network structure of the BAM and the Trans-Siberian Railway will be found from the reduction of the investment program, freezing the payment of dividends until 2026 and raising tariffs for industry. They have already been raised unscheduled by 6.3% since May 1. Planned indexation by 2% is promised from July 1, 2025 and from June 1, 2026. Well, the profit, presumably, will go to bonuses for top managers?

In the long term, such actions of the head of Rosseti Andrey Ryumin not only reduce the investment attractiveness of the company, scaring off investors, but also reduce the operational efficiency within the company. And this will lead to a further distortion of tariffs with a faster increase in the cost of electricity. Although … for Russian state monopolies “this is the way” and there seems to be no other way.