Industry News

Territory Generation Company # 1 (TGC-1) plans to invest within the next years up to $1.5 G, according to the company information.

New model of the wholesale power market in the Russian Federation, which includes the spot market without limits on prices and the system of regulated bilateral agreements, may be launched from 1 April, 2006, as Chairman of the management board of RAO UES of Russia Anatoliy Chubais told at investors’ teleconference on Friday upon the results of the board of directors meeting.

RAO UES reorganization could be implemented in two stages, head of RAO UES Anatoly Chubais told at a teleconference.

The Board of Directors of RAO UES of Russia supported the project of Boguchanskaya HPP construction completion with RUSAL, proposed by the management of the power holding. As Anatoliy Chubais declared at investors press-conference.

Fortum which for several years has been accumulating shares of Russian regional power companies in order to obtain a blocking interest in Territorial Generating Company (TGC) No 1 in the future has finally succeeded. At the end of last week, the Finnish company arranged to buy 24.8% of shares of Kolenergo from Norilsk Nickel. And Fortum already has 35% of the St Petersburg generating company (established in the course of the Lenenergo reform).

The Management Committee of Gazprom considered yesterday the Main Guidelines for Activities of OJSC Gazprom in the Electric Power Industry and the plan of actions for implementation thereof. It has become known to Kommersant that it was decided to have the documents improved and to review them at the next meeting of the Management Committee.

RAO UES of Russia (RTS: EESR) and Russian Aluminium have settled some of their differences over completion of Boguchansk Power Plant and construction of an aluminium plant that will consume its electric power, though they have failed to reach a full compromise on the project, an informed source has told Interfax.

Minpromenergo and RAO UES of Russia will develop a system of technical regulations for the electric power industry by the end of 2007, stated Marina Glazatova, Director of the Technical Regulation and Metrology Department of Minpromenergo addressing a round table meeting on Technical Regulation of the Electric Power Industry for Reliable Electricity Supplies.

CJSC Inter RAO UES plans to obtain a $150 million loan from Cloverie Plc through Citigroup. According to materials of RAO UES of Russia (owns 60% of shares of Inter RAO UES), the holding company's Board of Directors has ordered RAO UES representatives to vote at a meeting of the Board of Directors of Inter RAO UES to approve a major deal for Citigroup Global Markets Limited to secure funds to be provided by Cloverie Plc.

Performing the functions of the meeting of shareholders of OJSC Federal Grid Company (FGC, a 100%-subsidiary of RAO) at a meeting in absentia on Monday, the Board of Directors of RAO UES of Russia approved raising the authorised capital of the company by floating an additional share issue of up to 80 billion roubles, according to the minutes of the meeting posted on the holding company's website.