“If you entered the alt boiler room, then you need to negotiate”

At the beginning of the year, the mechanism for liberalization of heat prices (an alternative boiler house) was criticized after the dispute between the Siberian Generating Company and the authorities of Abakan due to the increase in the cost of a gigacalorie. Deputy General Director of T Plus for Commerce and Development Alexander Vilesov told Kommersant why there are questions about the mechanism and how much money is needed to upgrade the country’s heat supply system.

— Is it possible to say that the mechanism of the alt-boiler house is going through a crisis?

You can’t call it a crisis. Questions began to arise about the mechanism and the relationships within the mechanism. But this is normal, as the model has moved from the pilot stage to a widespread instrument. In Russia, 36 cities in 18 regions are already classified as heat supply price zones. Of these, four million-plus cities: Samara, Krasnoyarsk, Perm, Novosibirsk. Heat supply organizations assumed investment obligations to residents and authorities in the amount of 280 billion rubles, of which 180 billion rubles were due to the mechanism of the alt-boiler, and the rest are included in the current tariffs. Approximately half of the amount is the obligations of T Plus. In normal mode, we could talk about a maximum of 109 billion rubles. In terms of commitment, the situation looks quite revolutionary.

– How will the conflict between the authorities of Abakan and the Siberian Generating Company affect the industry due to an increase in the price of an alt-boiler house by 11% in December?

– We are following the situation in Abakan, as we are interested in the fate of the Altcooler in general. In Abakan, in my opinion, the problem is communication, not a crisis of the model or legal conflicts. The parties are discussing the size of the disagreement in the amount of 20 million rubles. per year with an investment of about a billion. So it’s definitely not a question of money. Rather, agreements and strategic points that could not be resolved. It is hardly possible to say that the mechanism of the alt-boiler house is in crisis due to 20 million rubles. with the volume of attracted 280 billion rubles. I do hope they come to an agreement. Perhaps this will happen in court, which will only strengthen the stability of the model.

— How much did prices increase under the alt boiler mechanism in the regions of your presence (18 cities, including Perm and Samara) in 2022?

— In signed agreements with cities and regions, indexation of the price of a gigacalorie is about 1.5–2% above inflation. In July, on average, it turned out to be 4%, and in December – about 11%. Our average price in regions with an alt-boiler is now 1.8 thousand rubles. for 1 Gcal.

— How did the regions react to the price increase in December?

— Before indexing, we discussed everything with each of the cities. We agreed that this is feasible from the point of view of the social situation and other aspects. The authorities agreed to a price increase according to the “inflation plus” formula. We have fulfilled our part of the obligations: we have invested in infrastructure. Moreover, in 2022, T Plus even exceeded the mandatory investment volume by about 20% on average in all cities. Our volume of investments in price zones amounted to 11.7 billion rubles.

– Have you received any claims from the FAS?

– All documentation that we sign with the city or region goes through the FAS. Regulators knew and understood everything in advance.

– Is it necessary to provide for the process of the region’s exit from the price zone?

— Before signing an agreement, we usually negotiate with the authorities of the region for about a year. The signatories to the agreement are adults. If you have entered the model, then you need to agree together. The Altcoil Plant motivates the parties, firstly, to think carefully before signing, and secondly, not to appeal to any external problems.

— How will the absence of indexation in 2023 affect your economy?

– Last year, the government raised regulated tariffs twice: on July 1, indexation was 4%, then on December 1 – another 9%. Even if you just add it arithmetically, although this is not entirely correct, you get 13%. The Altboiler also increased according to the schedules, although December was not foreseen in it. Thus, any consumer saw these percentages. To carry out an unscheduled indexation in December after the completion of all the fluctuations of the first part of the year is a balanced, correct decision to cover past inflation.

The next indexing is scheduled for July 2024, although I do not rule out that we will have a difficult conversation. Everything will depend on the macroeconomic situation. But we are not going to slow down investment rates.

— Would the transfer of all regions to the alt boiler remove most of the issues?

– We came out with such a proposal. The mechanism can be made mandatory for regions that fall under a number of objective criteria from the heat supply scheme, where you can immediately see the required amount of investment and the work plan. It is necessary to compare this required amount of investments and the tariff revenue of the heat supply organization. If the heat supply organization has less than the required minimum in terms of tariff revenue, then the region must be transferred to the price zone. If the tariff lags behind the price of the alt boiler house by 30%, and investments lag at least 30% or more behind the rates that are recorded in the scheme, you also need to go into the price zone. Almost the entire country falls under these criteria, except for Moscow and St. Petersburg.

— How do regulators react to the proposals?

– They are being discussed. The conversation is complex. This will not be easy to come by.

— Do you have a risk that you will not reach the price-cap of the alt-boiler house within the previously planned time frame?

– The ceiling will be reached longer than expected. But if there is a constant upward movement on the chart, then we are ready to endure for a while. These are our business risks. The average range of price achievement in our regions is from seven to ten years. A tariff freeze year always results in a year behind schedule. But what is important for us is what will happen after reaching the “ceiling”. Investors need confidence that they will definitely return all the funds.

— What profitability do you expect from your projects in the alt-boiler house?

– Taking into account the cost of capital, approximately 5%. In the CSA program, the yield was higher – an average of 10-12% per annum.

– Last year, the basic price parameters of the alt boiler house were increased until 2019. How has this affected prices in your regions?

— This did not affect the prices specified in the agreements. It had a little effect on the charts: they lengthened due to the increase in price-cap.

How much has your price-cap grown?

– By 25%.

— What volume of investments do you plan for 2023?

– In price zones, about 14 billion rubles. If the Territorial Development Fund, according to the new rules, provides access to financing, then we will think about increasing investment.

– What changes are envisaged in the work of the fund?

— Last year, the fund acted like a bank, providing long-term financing at low rates. This year, the fund works as a manager of budgetary funds: it collects applications and gives an interest-free subsidy to the region, which then gives a subsidy to the heat supply organization. We hope that we will receive a subsidy for 2024–2025. We are ready to use this money for our own infrastructure, as well as for the infrastructure that we rent or have in concession with the city.

Are there any rules you don’t like?

— We criticize some restrictions: for example, money can only be spent on distribution pipes. If the city has asked for a specific event that matches the heat supply scheme, then what difference does it make what pipe diameter will be replaced? Such rules will limit the number of borrowers, reduce the pace and scale of investment. Wouldn’t it be better to give money not for an object, but for someone who is generally responsible for the final result, that is, for the quality of heat supply? If they give money for an object, then the object will definitely be built for you, but it is not a fact that it will work effectively for the benefit of consumers. The new rules do not provide for the issuance of money under already concluded concession agreements. Our concessions are concluded “with a scratch”, and such restrictions will only worsen the process.

— The volume of the new fund financing program is 130 billion rubles. Is this amount sufficient?

– No. The entire heat supply system of the country is not in perfect condition, and most of it has already exceeded the normative service life. We need to solve this problem in five to seven years. The issue price is 5-7 trillion rubles. Two-thirds of this money will probably have to be taken from the state so that there is no increase in tariffs at a rate higher than inflation. The investment idea is as follows: all the money will return to the state with a yield in 10-15 years. Is this not a way to allocate state reserves so that they do not depreciate, and the infrastructure develops?

Interviewed by Polina Smertina