Inter RAO Group today announced operating results for the first nine months of 2014.

Group generation::

Indicator

9 months of 2014

9 months of 2013

+/-

Installed capacity at the end of the reporting period, GW

34,364

33,333

+3,1%

Power generation, TWh

104,240

107,607

-3,1%

Utilization of installed capacity

46,6%

49,3%

Heat distribution from collectors, million Gcal

27,648

28,114

-1,7%

Russian generation:

Indicator

9 months of 2014

9 months of 2013

+/-

Installed capacity at the end of the reporting period, GW

28,399

27,368

+3,8%

Power generation, TWh

94,258

97,092

-2,9%

Utilization of installed capacity

51,0%

54,2%


Heat distribution from collectors, million Gcal

27,469

27,990

-1,9%

Lower power generation by the Russian assets of Inter RAO Group primarily reflects the load optimization achieved with the newly implemented System for Selection of Active Generation Facilities (VSVGO). For example, we reduced the utilization of Kashirskaya, Verkhnetagilskaya and Gusinoozyorksaya TPPs at the times when they would make losses. The overall 0.5% reduction of power consumption in Russia was also a factor in our power generation.

However, some of our facilities increased their power output. The completion of the major gas trunkline overhaul in the summer of 2014 lifted all gas limitations and gave Kostromskaya TPP an opportunity to load all of its nine gas-fired units. Urengoyskaya TPP operated its PGU-460 with a high load due to shorter network maintenance periods that limited capacity output. Sochinskaya TPP increased its power generation during Sochi Winter Olympics and high season at the resort.

Inter RAO Group also tried to ensure the highest possible utilization of the most efficient power generation units at our power plants built under Capacity Delivery Agreements (CDA) last year-Dzhubginskaya TPP and Yuzhnouralskaya TPP-2.

Reduced heat delivery reflects an early end of the heating season.

International generation:

Indicator

9 months of 2014

9 months of 2013

+/-

Installed capacity at the end of the reporting period, GW

5,965

5,965

-

Power generation, TWh

9,982

10,515

-5,1%

Utilization of installed capacity

25,5%

26,9%

-1,4%

Heat distribution from collectors, million Gcal

0,179

0,124

+44,3%

The change in power generation by international subsidiaries of Inter RAO Group reflects several different factors. Low water levels in Georgia reduced the output of Khrami HPP-1 and Khrami HPP-2. However, Mtkvari TPP (Georgia), Razdan TPP (Armenia) and Moldova TPP were able to increase power generation due to applicable decisions of regulatory authorities.

Low demand for power in Kazakhstan forced Ekibastuzskaya TPP-2 to reduce its output. Turkish Trakya Elektrik reduced its output by 25.1% due to scheduled maintenance.

All our international assets increased their heat deliveries due to cold weather last winter.

Russian sales

Indicator

9 months of 2014

9 months of 2013

+/-

Consumer base, million

12,480

11,193

+11,5%

Retail electricity sales, TWh

117,939

112,452

+4,9%

Share of Russian retail market*

15,7%

14,5%


* Share of Russian retail market is defined as the ratio of retail sales to total actual power consumption in Russia (749.2 billion kWh in the first 9 months of 2014 and 753.1 billion kWh in the first 9 months of 2013, according to the System Operator of the Russian Unified Energy System)

Our Russian retailers demonstrated stronger performance due to geographic expansion of our suppliers of last resort in early 2014, with St. Petersburg Energy Sales Company starting to sell in Omsk Oblast, and JSC INTER RAO - Oryol Energy Sales Company starting to sell in Oryol Oblast.

Independent retailers achieved a 4.6% increase in electricity sales due to larger customer base.

International distributors and grid operators (Georgian Telasi and Electric Networks of Armenia):

Indicator

9 months of 2014

9 months of 2013

+/-

Total length of power lines, km

35 887

35 183

+2%

Electricity deliveries to the grid, billion kWh

6,198

5,998

+3,3%

Electricity losses

11,1%

11,4%


The length of our transmission lines in Georgia and Armenia increased due to infrastructure rehabilitation and upgrades, and new grid connections. Both countries show higher power consumption due to their growing economies and reduced transmission and distribution losses.

Electricity imports and exports by JSC Inter RAO across Russian borders:

Indicator

9 months of 2014

9 months of 2013

+/-

Exports, million kWh

9 669

13 481

-28,3%

Including:

Azerbaijan

39

43

-9,0%

Belarus

1 294

3 036

-57,4%

Georgia

287

266

+7,9%

Kazakhstan

1 193

1 308

-8,8%

China

2 631

2 733

-3,7%

Lithuania

2 105

2 729

-22,8%

Mongolia

297

309

-3,8%

Ukraine

44

28

+55,7%

Finland

1 682

2 936

-42,7%

South Ossetia

96

92

+4,0%





Imports, million kWh

2 794

3 597

-22,3%

Including:

Azerbaijan

94

91

+3,5%

Belarus

0

2


Georgia

160

281

-43,1%

Kazakhstan

2 481

3 107

-20,1%

Lithuania

34

91

-62,9%

Mongolia

24

15

+53,0%

Finland

0,2

3


-91,5%


Lower exports across nearly all markets reflect unfavorable pricing environment in the domestic and export electricity markets, most importantly our key markets of Finland, Lithuania and Belarus, combined with high domestic prices driven by increases in gas prices.

Exports to China reduced due to long scheduled maintenance of infrastructure facilities.

Increased exports to Ukraine resulted from the need to support the concurrent operation of the national energy systems.

Kazakhstan exports and imports reduced due to lack of economic benefit and fewer fluctuations in concurrent operation of the national energy systems.

Imports from Georgia reduced because spring floods started later than usual.

* * *

Inter RAO Group is a diversified energy holding company serving various segments of the Russian and international electric power industry. The Group is the leading importer and exporter of electricity in Russia and is actively stepping up its presence in electricity generation and sales and developing new business streams. Inter RAO's corporate strategy is focused on becoming an international energy company, a key player in the global power market, and the leading Russian energy company in terms of efficiency. Inter RAO Group owns and operates over 34.4 GW of installed power generation capacity.www.interrao.ru


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