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Energy reform in 2006 will concentrate on development of wholesale markets
Energy reform in 2006 will concentrate on development of wholesale markets, Russia's energy monopoly said Thursday. Unified Energy Systems (RAO UES) said in a report that it aims to set up a contract system in a regulated sector of the wholesale market starting April 1. Other projects include a scheme to pilot supplies to heavy consumers on a contract basis, preparing the regulated wholesale market to move to long-term regulated contracts starting next year, and pilot infrastructure service market projects in Q2 2006. In 2006, UES will continue moving to a competitive power market involving all energy wholesalers, and will hold the first energy supply auction for 2007 at the end of the year. The structural reforms envision formation of all wholesale energy generators and 10 out of 14 regional energy generators. UES plans to introduce mechanisms to attract private investment in the sector, including issuing additional shares.
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