Federation Council approves changes to a number of laws in connection with reformation of energy sector

30.10.2007 // Press service of Senator V.Mezhevich

Today the Federation Council approved changes to a number of laws of the Russian Federation in connection with the reformation of the energy sector

The bill has been drafted by State Duma deputies O.Kovalyov, Y.Lipatov, V.Yazev and Federation Council member V.Mezhevich. Mezhevich says that the law is aimed at improving the mechanisms of anti-monopoly control. It specifies ways to prevent instances of abuse of domineering and exclusive position on the wholesale market, particularly, by regulating or restricting prices. The law enlarges the rights of the regions in regulating electricity supply tariffs. It specifies the orders of management of the energy sector after the liquidation of RAO UES and the procedure of payment for connection to the united energy system of Russia.

«We have enhanced the role of the System Operator in managing the energy sector. When we were adopting the law on the reformation of the energy sector, we paid little attention to the role of the System Operator. So, we decided to enhance its role and responsibility in planning the development of the energy system of Russia. The new law says that after the reformation of the energy system the System Operator will become a 100% state-owned company and will be accountable to the Government for the efficiency of the energy system.”

The law also stipulates the formation of regional headquarters for coordinating the work for ensuring the safety of energy supplies. “Such headquarters will prevent the delays in energy supply occurring for uncontrollable reasons, for example, because of emergency.”

“Special attention is given to the order of connection of consumers to electricity networks. The Government will regulate the general order, while regional authorities will set tariffs and settle disputes. The laws makes the relevant contracts open for the public so as to prevent preferential approach.”

“The new changes stipulate the formation of a power capacity market and the establishment of non-profit self-regulated organization – Market Council. That organization will regulate the wholesale electricity market and will set rules for its participants. The Council will comprise representatives of the Federal Assembly, the Government and suppliers and consumers.

“The reforms in the Russian power industry are near completion. And the law we have adopted today will help us to create conditions for improving the management of the sector and ensuring its efficiency. It will help us to place the organizations of the United Energy System of Russia under the control of the Russian Federation,” says Mezhevich.