Restructuring - Results

2003

December 29, 2003. The Chairman of the RF Government signed the Decree N 1939-šon establishment of 7 interregional transmission companies (ITC).

December 1, 2003. The RF Government signed the Decree N 1754-š. “On approval of the program of changes in the system of state regulated prices (tariffs) in energy industry”, providing fixed limit of tariffs growth for 2004-2006 in each energy system and in UES of Russia on the whole.

November 1, 2003. For the first time in the history of Russian Federation free market trades were conducted by the “Administrator of Trading System of the wholesale electricity market of Unified Energy system”. 13 companies took part and the total trading volume accounted to 1% of the overall consumption in the European part of Russia and Urals. The trading volume increased to 8% ($700 mln.) of the overall consumption in the region. The price of electricity on the free market is 10% lower then the price on Federal Wholesale Market.

October 28, 2003. The RF Government signed the Decree N 648 “On approval of the Regulation on assigning of energy industry objects to united national networks and on registering of UNN energy industry objects”.

October 24, 2003. The Government signed the Decree N 643, approving of wholesale energy (power) market regulations of the transition period.

September 29, 2003. UES of Russia Board of Directors approved of the basic variant of WGC, providing:

• WGC establishment at the first stage as 100% affiliated UES of Russia companies with UES of Russia power plants property and AO-stations shares as authorized capital;
• WGC stock payment at the second stage with UES of Russia shares in AO-stations established on the basis of AO-energo;
• Transition to unified share in heat energy WGC by exchange of shares on the basis of unified evaluation method.

September 1, 2003. The Government signed the Decree N 1254-š, approving of the list of generative companies at wholesale energy industry market.

August 1, 2003. The Board of Directors of UES of Russia decided on a possibility of lowering the level of affiliation of repairs and servicing organizations I relation to UES of Russia, AO-energo and AO power plants.

June 27, 2003. The Government signed the Decree ¹ 865-š, approving of plan of energy industry reforming activities for 2003-2005.

May 29, 2003. UES of Russia Board of directors unanimously approved of the “Strategic concept “5+5” of UES of Russia for 2003-2008”, which specifies methods, stages, terms and major principles of energy industry future reforms, suggests sector target structure, states shareholders rights. The strategy became the fundamental principle of UES of Russia holding reforming.

March 26, 2003. The President of the Russian Federation signed the following Acts on energy industry reforming, which came into force:

• “On energy industry”;
• “On specifics of energy industry functioning during transition and on introducing amendments to certain legislative acts of the Russian Federation and on declaring of certain legislative acts of the Russian Federation invalid in connection with approval of the Federal Act “On energy industry”;
• “On introducing amendments and additions to the Federal Act “On state regulation of electricity and heat tariffs in the Russian Federation”;
• “On introducing amendments and additions to the Federal Act “On natural monopolies”;
• “On introducing amendments and additions to Part II of the Civil Code of the Russian Federation.