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Electricity price in Russia for natural and legal persons

Regions of Russia with the cheapest electricity

The price of electricity in Russia, compared to other countries, is low, both for citizens, private individuals and enterprises. At the same time, tariffs on the electricity market vary from one region of Russia to another.

For example, in 2016, the lowest-priced electricity region in Russia included Irkutsk region, where the tariff was 0.97 rubles/kWh, Republic of Crimea – 1.74 rubles/kWh, Sevastopol – 1.75 rubles/kWh, Republic of Khakassia – 1.84 rubles/kWh, Krasnoyarsk region – 2.26 rubles/kWh, Republic of Dagestan – 2.34 rubles/kWh, Novosibirsk region – 2.42 rubles/kWh, Republic of Chechnya – 2.24 rubles kWh, as well as Tyumen region, Khanty-Mansiysk Autonomous District, Yamalo-Nenets Autonomous Okrug, Murmansk, Orenburg regions, Chelyabinsk region and Trans-Baikal Territory, where the price of electricity for the final consumer did not exceed 3 rubles for kWh in Russia.

At the same time, the highest tariff rate on the Russian electricity market in 2016 is recorded in the Chukotka Autonomous Okrug. It made up not more than 8 rubles/kWh. If we compare Russian electricity prices with those of European countries, we can see that our country is rightly considered to be the state with the lowest electricity tariffs. For example, in Germany, a consumer will pay 36, 25 US Cents for kWh, which is equivalent to 20, 80 kopecks. In Denmark, the cost of electricity reaches 40, 38 US Cents, which is 23, 20 kopecks for kWh.

It is the low price of electricity in Russia that attracts foreign businessmen to our country and is an advantage when it comes to localizing production in the Russian Federation.

Currently, the Europeans have tended to consider the central part of our country, as well as the southern regions, for subsequent investments, despite the fact that the cheapest electricity in Russia in Siberia is in the Irkutsk region. Foreign business is cautious and this is understandable: European entrepreneurs are not sufficiently aware of the socio-economic, geographic, and infrastructural characteristics of the regions of the Asian part of Russia, so they are quite reluctant to place their production behind the Urals, and now they are just still looking at these territories. The available prices of electricity, of course, play an important role in this regard. But localization of production in Russia requires, in addition to energy prices, the transport-logistics perspectives, market opportunities, and the human resources of the region to be taken into account.

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What is the cost of electricity in Russia

According to the analysts, the cost of producing one kilowatt-hour of electricity, excluding transport in Russia, is two to three times lower today than in European countries. And the main reason is the difference in prices on fuel, as well as on gas. This is due to the fact that two-thirds of all electricity in Russia is produced by thermal power plants, and almost a half is produced by gas-fired power plants.

According to expert estimates, the share of the population makes up barely more than 10 per cent in total Russian electricity consumption, while the share of industry and agriculture is over 70 per cent.

Such indicators are related precisely to the availability of electricity prices in Russia for business.

The available electricity tariffs, which are the result of the low electricity cost in Russia, are an essential argument for the localization of enterprises in our country today for those foreigners who are thinking about producing in Russia.