Coal prices for the Far Eastern CHP « RusHydro » can be fixed

According to Kommersant, Russian President Vladimir Putin agreed to accelerate the introduction of market pricing for electricity in the Far East. Support to support the TPP in the largest Far Eastern generating company RusHydro (MOOEX: Hydr) The introduction of the obligation of priority supplies to the domestic market for regulated prices for energy needs for the needs of the needs of energy for coal miners should also. A similar mechanism is now valid for fertilizer manufacturers. According to analysts, the innovation, having improved the position of the Far Eastern energy, will hit the coal industry, which is already in a crisis.

Russian President Vladimir Putin instructed the deputy head of his administration to Maxim Oreshkin to study the possibility of supplying coal for the Utility Far Eastern CHP “RusHydro” by analogy with the mechanisms “which are worked out for agricultural producers in sowing or fertilizers”. The president made such a remark to the letter of the head of RusHydro Viktor Khmarin from the end of February (Kommersant got acquainted with the appeal). Probably, we are talking about priority supplies of coal at regulated prices. Fertilizer manufacturers supply products to Russian agrarians at prices recorded in 2021 and indexed in 2022 (for more details see. Help). “What is the difference? First, let them provide national needs, and then export. Report, ”the president wrote.

In addition, Vladimir Putin put the visa “agree” regarding the proposal of the head of RusHydro to speed up the liberalization of prices for the production of the RusHydro hydroelectric power station in the Far East, which is proposed to be launched since July of this year. This measure, according to the head of the company, will allow RusHydro to receive 185 billion rubles. additional revenue in 2025–2029. Now the sale of electricity at free prices is provided for thermal generation, the share of free sale of hydroelectric power stations is limited to 2.5%, but should gradually grow. The government considers the possibility of increasing the sales of the development of Far Eastern hydroelectric power stations at market prices at once to 100%, which can increase the final prices for consumers by 4%.

In RusHydro and Sueke (the main supplier of coal to the Far Eastern CHPs) refused comments. “Kommersant” did not answer the FAS and the Ministry of Energy.

RusHydro is the main owner of generating assets in the Far East, from January 1, the region has been assigned to the second price zone of wholesale energy market (Siberia). The tariff revenue received by thermal generation of RusHydro in the region does not cover the cost of buying coal. The regulators limit the amount of the company’s purchase for the purchase of fuel, while the coal is traded at free prices and the actual expenses do not coincide with the inherent in the tariff.

In 2021, the Far Eastern generating company (DGK, a member of RusHydro) acquired 8.94 million tons of coal for 25.99 billion rubles, in 2022 – 9.34 million tons of 47 billion rubles, the company’s reports said. In later reports, data on fuel purchases were not disclosed. But as follows from the audit report to the report for 2024, the tariff for the capacity of 2025–2027 includes 17.1 billion rubles. falling income for the purchase of fuel for 2021–2023, of which 2.8 billion rubles. for 2023, 10.5 billion rubles. for 2022. Forecast falling income for 2024 – 6.14 billion rubles, they will be coordinated in the FAS to include in the bonus to the price of competitive power selection for 2026–2027.

According to Kommersant, the average price of coal purchases for the TPP DGK in 2022 was 5.4 thousand rubles. per ton, in 2024 – 4.9 thousand rubles. per ton.

The export price of energy coal with a calorie content of 6 thousand kcal on FOB conditions of the Eastern on April 17 was $ 78 per ton, for coal with a calorie content of 5.5 thousand kcal – $ 64.5 per ton.

The government has not been able to find the sources of compensation for RusHydro income for several years – it was proposed to consider the allocation of funds from the budget or a sharp increase in tariffs. As “Kommersant” wrote February 11 And March 3now a set of measures is being worked out: from the refusal to pay dividends to shareholders to the extension of subsidies for consumers of electricity of the Far East at the expense of the rest of Russia until 2035.

According to President Vladimir Khmarin, the company is forced to attract large volumes of borrowed funds for the implementation of investment projects. The size of the RusHydro loan portfolio at the end of 2024 amounted to 607 billion rubles. The debt ratio/EBITDA in the two -year perspective, according to its estimates, will exceed the level of 5.5, « which threatens the group with a loss of financial stability. »

The “Market Council” notes that since the beginning of 2025, 97.5% of the electricity and power supplied by the hydroelectric power station “which is aimed at restricting prices for consumers of the region” has been sold at adjustable prices at the Far East. “A decrease in the specified share will increase the growth rate of electricity prices and power on the territory of the United Electric System of the Far East relative to the level that will develop while maintaining this share,” the association said.

The “Energy Consumer Community” (large industry lobby) “cause anxiety” not so much the very proposed measures proposed by the company as “unsystematic attempts to revise previously agreed rules”.

“This indicates the absence of a clear development scenario and blurred confidence in the regulators. A healthy investment climate in such conditions is very difficult to form, ”they say.

Alexander Kotov from Neft Research notes that the coal industry is in a crisis and analogies with the fertilizer market will not be suitable. It recalls that quotas for priority supplies for the export of coal to the east in 2025 were twice. “Any other quotation, if it is introduced, will hurt the exporters of coal and cause avalanche -like bankruptcy of mining enterprises,” the analyst believes. To resolve the situation, in his opinion, long -term contracts are needed between energy and coal companies, as well as with Russian Railways for the supply and transportation of coal with a priority for suppliers from the Far East. In order to reduce dependence on distant coal, it adds, it is necessary to conduct an experimental burning of impenetrable coal from the resources of the Far Eastern deposits.

Director of the Rexoft Energy Department, Sergei Cherepov, notes that accelerated prices will allow to eliminate cross subsidies and ensure competition between different types of generation. “The increase in prices in the Far East will restrain a large share of cheap hydrogeneration, but a moderate increase in prices for large industrial consumers is shortly possible,” the expert says. Due to the increase in the share of free volumes of hydroelectric power plants, in his opinion, additional liquidity will appear on the wholesale market and the competition between thermal and hydrogenerators will intensify, which in the long term can attract investments in the modernization of existing capacities.

Tatyana Dyatel, Anna Tybin