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Inter RAO reduces electricity supplies to China, agrees to increase prices

The company negotiates a price increase

MOSCOW, October 3. /TASS/. Inter RAO (Russia's export-import operator for electrical energy) is still negotiating raising electricity prices with China by the amount of the export duty and started to impose partial supply restrictions. At the same time, the company managed to reach an agreement with Mongolia on a price rise, and shipments in this direction continue, Inter RAO told TASS.

"We had successful negotiations with Mongolia. Mongolia agreed to raise prices, so supplies are still available. Negotiations with China have not yet concluded, we have started to partial supply limits," the company said.

Earlier, the company's official spokesperson Alexandra Panina said that Inter RAO gave its counterparts a proposal to revise the price of electricity supplies by 7% in light of the imposition of export duties. If prices are not updated, the corporation will limit or discontinue production, including supplies for China, Mongolia, Azerbaijan, and South Ossetia.

At the end of 2022, electricity supplies to China reached a record-breaking figure of 4.7 bln kWh.

The Russian government has introduced flexible export duties on some goods to protect the domestic market from October 1. The duties are tied to the ruble exchange rate. Electricity is also subject to duties. The measure is expected be in force until the end of 2024.

Duties range from 0% to 10% depending on the goods. The charge will generally vary from 4% to 7%, depending on the national currency's exchange rate, and it will be zero at 80 rubles per dollar or less.

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