The risk of unfavorable tariff balance resolutions made by the regulator
Unfavorable tariff balance resolutions may lead to a decrease in the Group’s necessary gross proceeds (NGP) received from the sale of electricity (capacity) on the retail market down to a level that does not allow it to compensate for the expenses of functioning as a guaranteed supplier.
The risk of reduced electricity and capacity sales (productive supply)
Seasonal temperature variations, as well as the loss of clients because of their withdrawal in favor of competitive supply companies and WECM entry, may lead to a decrease in electricity and capacity output and failure to earn the expected marginal profit.
To manage these risks, the Group:
- promptly provides supporting materials and estimates, taking into account all expected expenses and shortfalls in the income of past periods while handling tariff applications and approving the necessary gross proceeds;
- disputes any tariff and balance resolutions in compliance with industry laws;
- constantly monitors the clients from the risk group and forms counter offers from the Group’s independent power supply companies if any competitive retailers appear;
- increases the quality of customer services and develops distance and interactive communication channels and client services.