JSC Atomenergoprom Annual Report
JSC ATOMENERGOPROM / ANNUAL REPORT / 110
Risks and changes
in risk levels
Risk
description
Risk management practices
Connec-
tion with
strategic
goals
Risks and changes
in risk levels
(risk owners)
(risk owners)
Commercial risks
5. Nuclear fuel cycle
(NFC) product and
service market risk
I
(Executives of the rel-
evant Divisions of the
Company)
Adverse
changes in
the pricing
environment
and demand
on markets
for natural
uranium and
uranium con-
version and
enrichment
services
Management approaches:
Maintaining an optimal balance between market-focused and
escalation pricing (benchmark price inflation) in contracts;
Embedding quantitative flexibility and options in contracts with
suppliers to align purchase and sales volumes;
1
2
Discussing the volume of future orders with customers in ad-
vance;
- Promoting products in new market segments;
4
Improving the technical and economic characteristics of nuclear
fuel; developing new types of fuel;
- Establishing partnerships in the form of joint ventures (JVs) with
foreign suppliers of NFC products and services;
Using long-term pricing mechanisms; aligning pricing mecha-
nisms used for procurement and those used in contracts with a
high level of commodity risk;
- Taking into account the current market performance and estab-
lished operational limits in the course of operations;
Product supply diversification. Searching for partners in friendly
jurisdictions;
-
Exploring opportunities for concluding additional commercial
contracts on the spot market to mitigate the risk;
- Accelerating product shipments, optimising working capital, including
faster receipt of payments from counterparties.
Results:
By implementing the above measures and taking advantage of
opportunities offered by a rise in product prices, the Company was
able to mitigate the risk.
The risk level remains unchanged, as quotations for natural ura-
nium and the separative work unit are currently low, which limits
their downside, while creating an upside if the market environ-
ment improves.
6. Electricity and
capacity market risk
Adverse
changes in
-
electricity
and capacity
prices
(Director General of
JSC Rosenergoatom)
GOVERNANCE SYSTEM
Management approaches:
- Participating in the working group on forecasting hosted
by the Association NP Market Council;
- Monitoring price drivers;
- Updating price forecasts on a monthly basis.
1
Risk
description
Risk management practices
Results:
Agreement was reached with the Association NP Market Council
to submit an additional forecast taking into account the predomi-
nance of nuclear power sales in the region, which makes it possible
to provide the most accurate forecast for electricity prices on the
day-ahead market (DAM) for NPPs. Given the challenging economic
situation, the risk of a decline in consumption, which is one of the
DAM price drivers, is increasing. The impact of wind and solar power
generation capacities commissioned as part of the Integrated Power
Systems of the North-West and the South cannot be fully reflected
in the forecast due to limited statistics on electricity output, but in
certain periods of 2022 they made a significant contribution to a
decrease in electricity prices. The likelihood of materialisation of the
above risks will increase in 2023.
Operational risks
7. Risk of a decrease
in power generation
-
(Director General of
JSC Rosenergoatom)
Decrease in
power gen-
eration due
to equipment
shutdowns
and unavail-
ability
Management approaches:
- In order to improve NPP safety, reliability and resilience, prevent
equipment failures, meet the load schedule and achieve the
target for power and heat supply while meeting the established
schedule of repairs at NPP power units, to accelerate efforts to
achieve key targets for power generation, and in order to sys-
tematise efforts aimed at ensuring that NPP managers assume
a greater personal responsibility, the relevant orders were issued
in 2022;
- Scheduled repairs of NPP power units are carried out annually in
accordance with the approved schedule; NPP life extension and
equipment upgrade programmes are implemented to increase
installed capacity and power generation at operating power
units (including the possibility of power units operating at above
nameplate capacity).
Results:
In 2022, nuclear power generation reached a record high of
223.4 billion kWh, totalling 102.5% of the balance target set by
the Federal Antimonopoly Service (FAS) of Russia and 100.4% of
electricity output in 2021. The capacity factor stood at 86.21% in
2022. Russian NPPs forming part of the Unified Power System of
Russia accounted for 19.9% of the total electricity output within
the Unified Power System of Russia. All incidents and equipment
failures have been properly investigated. Corrective and preventive
measures have been developed in order to address the root causes
of the incidents and prevent their recurrence.
The implementation of risk management measures and the use of
RPS tools make it possible to offset the impact of negative factors.
For details, see chapter 4 'Performance of Divisions'.
1
Connec-
tion with
strategic
goals
GOVERNANCE SYSTEM
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