Chubais insists reforms to remain on schedule for 2006
Having survived a recent assassination attempt, the chief executive of Russian energy giant Unified Energy Systems, Anatoly Chubais, has reportedly said that the programme of power reforms will continue on schedule and the breakup of UES would be completed by the end of 2006.
Chubais is quoted as saying, “The reorganisation of UES, which will be accomplished in 2006 in accordance with the government decision, will place a full stop after all the theoretical and practical discussion about this. Private generation will become the foundation of Russia’s developing electricity sector and nobody can stop us in this.”
Under the reforms programme, UES will be broken up into separate generation, transmission and distribution companies.
Finnish energy giant Fortum, meanwhile, will have an 18% stake in Territorial Generating Company No. 1 (TGC-1), which is being formed by UES together with three northwestern regional power companies, St Petersburg-based Lenenergo, Kolenergo and Karelenergo as part of the reforms process. Lenenergo, of which Fortum owns just over 30% and UES 49%, will receive a 63% stake in the charter capital of TGC-1. Kolenergo and Karelenergo will receive 25% and 12% respectively
Fortum has put forward three candidates and UES four candidates for the 11-seat board of TGC-1, which Fortum has valued at $1.023 billion. TGC-1 is due to start operating in July.