The next step in tariff growth in Russia is planned for 1 July 2013. The current plan suggests the following YoY growth patterns: 15% for gas tariff, 10% for grids, 12-14% for spot prices and 12-15% for households electricity tariffs, 10% for heat tariffs.
The current news flow on possibly adjusting tariffs is quite mixed. This, in our view, leaves sizable room for speculation and clouds the outcome of what was once a fairly stable tariff outlook (after the 2011 election year tariff reshuffle). In our view, such uncertainty will weigh on utilities’ stock prices unless a final decision is taken in April-June 2013.
This is yet another reminder of the contained tariff growth environment in the utilities sector and respectively high risk of additional pressure on the tariffs.