‘The power supplying companies can raise investments in three ways: trough raising their tariffs, cutting costs, and reducing interest rates on their loans,’ says General Director of Blagodat Securities Investment Company Vsevolod Chaschin.

‘The first way is obvious but has some limitations regulated by the Regional Power Engineering Committee. The third way is, a matter of fact, well justified as the loan interest rates tend to go down lately. A successfully developing company needs to choose the second way, that is, providing effective and sound management. It is reducing the company’s outgoings that ensures some regular increase in investments. If a company only makes money through raising tariffs, its management must be poor,’ Mr Chaschin says.

In the meantime, the Interregional Network Company of Urals and Volga suggests doubling the investment component of the electricity tariff next year. The proposal has been placed with the Federal Tariff Service and the regional power-engineering committees.