Reuters
Russian Ues To Up Private Ownership In Power Sector Moscow, September 17, 1999

Private ownership in Russian national power company UES will be sharply increased, chief executive Anatoly Chubais said on Friday. A UES spokesman said a government order required the increase and had been approved during July talks with the World Bank as a condition of a structural adjustment loan to Russia. Chubais, speaking at a conference on Russian preparation for winter, also said a plan for reforming the wholesale electricity market was ready. He said from January 1, 2000, members of the market, which includes regional utilities, power generators and major consumers, would be able to make deals directly with each other and an electricity market would be organized. Currently supplies and contracts on the market are controlled by UES, but Chubais predicted bourse trade would eventually account for 50 percent of the wholesale market. UES under Chubais has been trying to increase the holding company's control of the subsidiaries, a move seen by analysts as key to carrying out reforms. "Ownership of the sector is so diversified, reform becomes even more difficult," said Mayra Rodríguez Valladares, author of FT Energy's Reforming the Russian Electricity Market." (Regional) energo management continues to be very suspicious of Moscow."