Inter RAO and China agreed to increase prices for electricity supplies by 7%

Russian operator of electricity export-import “Inter RAO» agreed with Chinese partners to increase the contract price for electricity supplies by the amount of duty (7%). This was reported by company representative Alexandra Panina.

“We agreed with China. China increases the price under our contract by the amount of duty. China will pay for this duty,” she said, noting that nothing will change for Far Eastern consumers.

2 October “Inter RAO» entered partial restrictions on electricity supplies to China. This was due to the introduction of an export duty of 7%. At the end of October Panina notedthat the profitability of supplies abroad is below 7%, to China – 5%, and to Mongolia even less, so the company “cannot afford to pay a 7% duty.”

Previously “Kommersant” wrote, that Inter RAO proposed to increase the profitability of its electricity supplies to China at the expense of consumers of the Far East energy system. In particular, the regulator proposed artificially limiting the marginality of electricity sales to China at 5%, and using the remaining funds to reduce tariffs in the Far East.

September 21 government reported, which introduces flexible export duties on a wide range of goods linked to the ruble exchange rate. They began to operate on October 1 and will remain in place until the end of 2024. The duty on supplies outside the EAEU will be 4–7% of the customs value of the goods with an average exchange rate of more than 80 rubles/$. Oil, gas, grain, timber and a number of other goods will not be subject to duties. Panina said that the company plans to appeal to the government with a request to make an exception for electricity.