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Rosseti Volga

October 20, 2015

Multi-million ruble debts that consumers owe complicate settlements between Ulyanovsk branch of IDGC of Volga, PJSC and its contractors

Growing receivables of IDGC of Volga, PJSC in the Ulyanovsk region due from its major customers exceed 800 million rubles. If this situation persists in the nearest month, the total amounts due to the regional electricity providers by mala fide customers will reach the unprecedented sum of one billion rubles. Major defaulting customers remain the same – Ulyanovskenergo, JSC, Municipal Unitary Enterprise “Ulyanovsk City Electric Networks”, GNTz NIIAR, ŔÎ, UMUP (Ulyanovsk Municipal Unitary Enterprise) Ulyanovskvodokanal, and Inzenskiye Regional Electric Grids, LLC. The result of negative performance of customers and their failure to discharge payment obligations under court orders of enforcement is that Ulyanovsk DG, a branch of IDGC of Volga, PJSC, has to seek alternative methods for settlements with partner grid operators. Any grid operator needs finances to keep the entire grid complex operational and to secure its own liabilities to contractors, tax and payroll related liabilities. IDGC of Volga, PJSC has to raise funds, though maintenance of credits and loans has a negative effect on the company’s financial performance. In fact, debtors of IDGC of Volga benefit from non-interest bearing credit, as interest on credits are incomparably higher than late payment charges. Despite active debt-collecting measures taken in collaboration with the regional authorities, including debt recovery claims filed by Ulyanovsk branch, other legitimate measures against non-payers and wiliness to resort to debt restructuring and repayment by installments, chances for successive outcome are still very low. Despite financial distress caused by “don’t-care” attitude of some contractors, specialists of Ulyanovsk DG, a branch of IDGC of Volga, PJSC, have successfully completed the repair and maintenance program-2015, to winterize their power facilities and prepare to operate under peak loads. Still, ongoing financing to cover technical maintenance costs is a key to reliable and accident-free operations in the autumn and winter season. Thereby, Ulyanovsk branch has to cut miscellaneous costs to the maximum extent possible.

 

 

 

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