Russia's Energy Ministry supports a moratorium on privatization of the country's Interregional Distribution Grid Company, Deputy Energy Minister Andrei Shishkin said on Thursday.
"Given the fact that the company has switched to a RAB (regulatory asset base) system, its capitalization should increase and will remain at the maximum level for a certain period of time," he said, without specifying the period in which privatization would be postponed.
The RAB system allows investors a return on invested capital when calculating the tariff for electricity transmission and allows them to plan their revenues and costs for several years ahead.
IDGC group, set up in 2008, received stakes in 11 grid companies of state power provider RAO UES of Russia following RAO UES's reform. The Russian state holds a 52 percent stake in the group.
MOSCOW, October 28 (RIA Novosti)
