Management of the Mosocow power distribution grid is to be carried out by a specialist company following an agreement between Anatoly Chubais, head of Unified Energy Systems (UES), and Yury Luzhkov, the city’s mayor.
The 50:50 joint venture follows massive blackouts that struck the city in late May.
The as yet un-named company is expected to include municipally run grid operators as well as two UES-controlled heat and power distribution companies that were spun off from Mosenergo this year.
Luzkhov is a fierce critic of Chubais and has argued that the UES focus on reform is undermining work on infrastructure. While pledging that reforms will continue, Chubais has had little choice but to concede to some of Luzhkov’s demands and give the city government more say in local power operations.