FGC UES

Federal Grid Company (FGC) is the operator and manager of Russia’s unified trunk electricity transmission grid system. With over 121,000 km of transmission lines and over 305 GVA of installed transformer capacity, it is the largest publicly traded electricity transmission company in the world.

FGC provides transmission and connection services to the Russian wholesale electricity market. It maintains and develops the grid system and supervises grid facilities and infrastructure in 73 Russian regions. Its customers are distribution grid companies, large commercial end customers and retail electricity supply companies. The company operates in an exclusive, competition-free environment, and is regulated by the Government. The company’s revenues are mainly driven by the transmission tariff set by the regulator, the Federal Tariff Service. From January 1, 2010 a new RAB (Regulatory Asset Base) tariff framework was introduced.

The company was incorporated in June 2002 as part of the reorganization of Russia’s electrical power industry. The Russian government is the largest shareholder, with a 79.1% stake. FGC’s common shares are traded on the RTS and MICEX stock exchanges under the ticker FEES. The stock is included in the MSCI Emerging Markets and MSCI Russia indexes.