Russia's electric power industry will be reformed by July 1, 2008

Monday, March 1, 2021

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Russia's electric power industry will be reformed by July 1, 2008, the industry and energy minister said Thursday. Viktor Khristenko said the government considered it possible to complete before July 1, 2008 the procedures of reorganization in Russia's electric power sector. Khristenko also said a decision had to be taken in the first half of 2007 on the reorganization of the electricity monopoly Unified Energy System (UES) "Under the action plan, the government is to make all decisions (on the reform of the power industry) in the first half of 2007, including measures to reorganize RAO UES, detach a power grid company and a system operator and ensure state participation in their capital," Khristenko said. Russia's power sector has undergone radical changes in recent years aimed at increasing the efficiency of power plants and developing the industry by attracting investment. During the restructuring process, specialized structures have been created in place of the old vertically integrated companies. By the end of the reforms, potentially competitive parts of the industry - generation, sales and repair companies - will become mainly private and will compete with each other. However, natural monopoly functions - power transmission and dispatching - will remain state-controlled.

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