Monday, June 26, 2017

Energy Ministry deciding on reduction in energy tariff for BAZ

The Russian Energy Ministry will soon be making decision on the reduction of the energy tariff for BAZ.

The ministry is considering a long-term electrical power tariff for the Bogoslovsk Aluminum Plant, according to Energy Minister Alexander Novak, Cogeneration reports.

Novak expects the issue to be settled on an individual basis.

"At the present time, there is still no final decision, but generally, we are dealing with this situation," the minister said, according to Cogeneration. "The price [for electric power for BAZ] should be economically justified most of all, in accordance with the tariffs and decisions that are established today, that form on the market. So here the enterprise's economy needs to be looked at more closely," Novak said, according to Cogeneration. "I think that we will make a final determination on this issue in the near future."

Russian Aluminum said that it isn't possible for aluminum production at BAZ to break even without a reduction in the electricity tariff.

The company said that the electricity price needs to be comparable with the price at other Siberian plants, which is not more than $0.03 per kilowatt.

BAZ produces aluminum and alumina and also alumosilicic and aluminum-magnesium alloys, which are used in machine and aviation building and protect objects from corrosion. The plant utilizes bauxites from the Severouralskoye field, Cogeneration reports.