Power supply into private hands

13 Jul, 2006 05:14 / Updated 18 years ago

Power sector privatisation policies of Russia’s government will sell off generating companies known as OGKs, currently part of national power grid RAO UES. Ten per cent of the largest generator, OGK4, will be listed in Russia.

Grid giant UES supplies up to 70 per cent of Russia’s electricity. Government plans aim to privatise energy-generating facilities, creating companies competing for market share and better investment conditions. OGK4 is typical of the path which the government wants the industry to follow. UES will keep majority ownership, with 90 per cent of the shares. Going private is a tool to optimise efficiency among power-generators and to attract investment, UES says.