Russian President Vladimir Putin has given his consent to a new strategy for the development of the electric power grid industry.

Energy Minister Alexander Novak said the strategy foresees new performance indicators for power grid companies, reported Electric Light & Power.

The minister said the new strategy will address the number and duration of power outages per consumer, which are currently ten times higher than in developed countries.

Under the new plan, consumers will pay less for services, if companies do not meet quality and reliability standards that will be stipulated by the law.

In addition, the government will introduce systems for comparing reliability, investments and other parameters of power grid companies.

The plan is expected to gradually cut the number of regional distribution companies to 800 by 2030 from the existing 3,241, by means of consolidation.

Novak added that power transmission companies will have to obtain licenses for their operations.

The strategy also includes reducing operating expenses per consumer by 40% by 2017 and cutting power losses by 7.5% for distribution companies.