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Dagestan and PJSC IDGC of North Caucasus jointly establish new republican electricity network company

20 June 2015 17:10 Posted in:  BUSINESS
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Makhachkala, June 20, 2015. Today at the St. Petersburg International Economic Forum the Director General of the IDGC of the North Caucasus Yuri Zaitsev and the Head of the Republic of Dagestan Ramazan Abdulatipov put their signatures on the document verifying “road map” and the consolidation of efforts for the creation of a joint power grid company in the republic.

Officially launched for the nineteenth time the International Economic Forum in St. Petersburg has become a venue for signing the important agreements on the creation of joint stock company "Dagestan grid company" between the IDGC of the North Caucasus and the Republic of Dagestan, - the Public Relations Department officer of the PJSC IDGC of North Caucasus said.

According to the document, the IDGC of the North Caucasus and the government of Dagestan become the founders of the "Grid Company of Dagestan". From the moment of state registration of the joint-stock company "Dagestan Grid Company", the Republic of Dagestan intends to facilitate the consolidation of power grid complex on the basis of the joint venture and to ensure timely coordination and approval of the relevant investment program for the new company. Besides, within its competence, the republican authorities will assist in establishing reasonable electricity tariffs and, most importantly, take comprehensive measures to ensure the 100% payment for services on electric power transmission.

For its part, the IDGC of the North Caucasus is obliged to ensure transfer of rental transmission assets owned by the company to the joint venture and to ensure timely execution of the investment program.

According to Yuri Zaitsev, for the present time, the situation with the electricity networks in Dagestan is characterized not in the best way: low payment discipline leads to the accumulation of huge debts. The republic had several time accepted unfounded tariff decisions, because of which the IDGC of the North Caucasus permanently remain on the brink of survival. "I hope that the agreement signed on the Forum will become the beginning of a long and fruitful cooperation aimed at solving the accumulated problems in the region," – the Company General Director said.

According to the Head of Dagestan Ramazan Abdulatipov, the primary task is to consolidate the electric grid complex of the republic, because the development of industrial complex and new investment projects much depends on the state of the power grid.

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