The Council of Power Producers which involves major foreign and Russian companies has come forward in support of the deployment by the Market Council of a mechanism to even out prices for electric power in August. At a meeting on July 31, 2008, the Supervisory Board of the Nonprofit Partnership Market Council passed a decision to introduce a price-levelling mechanism should competitive prices in each price range grow by more than 5% in August this year in comparison with the average price in the same range in July 2008 (the price was up to 1,100 roubles per MW). Growth in prices in July was stimulated by regular repairs of power plants, low rivers and, accordingly, less power generated by HPPs, high prices for gas in excess of previously negotiated quantities, power line repairs, etc. The Market Council discussed the situation with prices in the market and passed a decision to set up a working group for analysing the causes of the rising cost. If comprehensive measures are taken, the price burden on consumers will turn out to be lower. Information about the Partnership Members: Nonprofit Partnership Council of Power Producers and Strategic Investors in the Power Industry The Nonprofit Partnership was established by major foreign and Russian companies operating in the Russian power industry on April 22, 2008. The founders are LLC EuroSibEnergo, E.On Russia Power, CJSC IES, OJSC WGC-3, OJSC WGC-5 (Enel), OJSC SUEK, and OJSC SGK-TGC-8. Creation of the Nonprofit Partnership Council of Power Producers was brought about by changes in the system of state control over the industry, completion of the formation of a free competitive market, and strengthening of state control in natural monopolies. The main goal of the partnership is to reduce risks for investors in the Russian power industry and improve performance of the partnership member companies. CJSC IES President Mikhail Slobodin is Chairman of the Partnership's Supervisory Board. LLC EuroSibEnergo An independent management company in the power industry. It was founded in 2001 and manages the En+ power assets. The company's share of the Russian electricity market amounts to some 9.1%. The company manages Russia's largest power facilities with a total installed capacity of some 20 million kilowatts, of which hydroelectric power plants account for over 15,000, and serves in excess of 5 million consumers. LLC EuroSibEnergo has under its management the Volgaenergo group of companies, major shareholdings in OJSC Krasnoyarsk HPP, OJSC Irkutskenergo, LLC Vostsibugol Company, and a number of other power companies. OJSC WGC-5 /Enel WGC-5 was established in 2004 and is a leading wholesale generating company in Russia. It was the first generating company to attract private investment and to be spun off from RAO UES. Operational branches of WGC-5 include: Konakovo State District Power Plant (GRES), Nevinnomyssk GRES, Sredneuralsk GRES, and Reftinskii GRES. The total installed capacity of the company's generating assets is
8,672 megawatts for electric power and 2,242 Gcal/h for heat. Since March 2008, WGC-5 has been controlled by Enel, a major Italian company with leading positions in the production, distribution, and sale of electric power and gas. Enel ranks second among European power companies in terms of installed capacity and has representative offices in 21 countries on four continents. E.On Russia Power GmbH E.ON Russia Power, a wholly-owned subsidiary of E.ON AG (Germany), was set up in 2007 to expand E.ON's business in the Russian market. E.ON Russia Power is at the head of the "Russia" market unit, the business unit of the E.ON group that unites all of the company's assets in the Russian Federation. In September 2007, E.ON Russia Power purchased a controlling interest in OJSC WGC-4. IES-Holding Established in 2002, IES-Holding (IES) is Russia's largest private operator in the power engineering and gas distribution industries. Its main business lines include generation, energy trading and retail. The holding company's strategic assets comprise TGK-5, TGK-6, TGK-7, TGK-9, and a number of regional energy selling companies, as well as GAZEKS, a company operating in the gas distribution and gas supply sectors of Russia and Ukraine. The installed electric power and heat capacity of the TGCs, in which IES-Holding is a strategic shareholder, totals 15,767 MW and 67,799 Gcal/h respectively. OJSC WGC-3 OJSC WGC-3 was founded in November 2004 on the basis of six federal power plants: Kostroma GRES, Pechora GRES, Cherepet GRES, Kharanor GRES, Gusinoozyorsk GRES, and Yuzhnouralsk GRES. The company generates and sells electricity and heat. OJSC Norilsk Nickel Mining and Metallurgical Company owns 60,15% of its shares, and minority shareholders have 39.85%. OJSC Siberian Coal Energy Company OJSC Siberian Coal Energy Company (SUEK) accounts for around 30% of coal supplies to the home market and approximately 25% of Russian coal exports. SUEK is the largest national exporter of solid fuel and the only Russian company among the ten leaders of the global coal market. OJSC SUEK is the largest private shareholder in a number of power companies in Siberia and the Far East. OJSC Southern Generating Company - TGC-8 OJSC Southern Generating Company - TGC-8, the leading heat producer in the Southern Federal District, has strong positions in the wholesale and retail power markets. The company has branches in the Astrakhan, Volgograd and Rostov-on-Don Regions, Krasnodar and Stavropol Territories, and the Republic of Dagestan. Installed capacity: 3,601 megawatts for electric power and 13,366 Gcal/hour for heat. |
