TGC-1 explained the impact of debt for the supplied resources on the volumes of heating grids modernisation

On May 19, 2016, a round table discussion, Non-payments in the power sector and investment programs implementation for energy enterprises, was held as part of the Russian International Energy Forum Edward Lisitskiy, Deputy General Director for Development of TGC-1, discussed the impact of debt for the supplied resources on heating grids modernisation, as well as the practical cooperation between power engineers and public officers, and communication with consumers.

– Renovation of worn-out heat supply grids is hampered by three factors: low tariff base, lack of full-scale compensation for investment program costs incurred by enterprises and growing debt for resources, Edward Lisitskiy said. – Dealing with non-payers, TGC-1 applies legal methods only. But even in this case we are facing counteraction of the city authorities, condemning us for legitimate actions.

The resource supply company has often initiated a dialogue with legislative and executive authorities concerning critical wear and tear of the heating grid complex.

– We need to understand that the solution of this challenge lies in the sphere of competence of not only resource-supplying companies. The executive authorities should see the depth and severity of these problems, Edward Lisitskiy noted. – More than 12 billion roubles of own and borrowed funds have already been allocated in excess of the tariff to the investment program, Heating Grid of St. Petersburg. After 10 years of joint history, we need reciprocal support activities. The city administration should pay attention to this issue and negotiate the sale of the asset on market conditions.

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TGC-1 is the leading producer and supplier of electricity and heat in the Northwest of Russia. The Company comprises the electric power plants within four entities of the Russian Federation: St. Petersburg, the Republic of Karelia, the Leningrad Region and the Murmansk Region