Tripartite Working Group has still not managed to significantly improve the concept of draft laws for electricity sector reforms: this is the opinion expressed by YABLOKO's experts participating in the work of the group. The meeting of the group, involving representatives from the government and both the chambers of the Russian parliament, took place in the State Duma on August 5, 2002.

YABLOKO managed to persuade the government to include the following principled positions in the draft laws:

1. The draft laws will contain the underlying principles for the formation of generating markets.
2. The draft law will contain a clear-cut definition of the guaranteed supplier and its responsibilities.
3. The draft law will include the underlying principles for the functioning of the wholesale electricity market.

YABLOKO will also insist on the adoption of the following concepts:

1. The Federal Grid Company and system operator should be 100% state-owned.
2. Proxies of the subjects of the Russian Federation in the electricity sector should be accurately determined.
3. Anti-monopoly norms should be introduced to the law (i.e., ban any combination of monopolistic and competitive activities when entering the wholesale and retail markets, limit energy monopolists, prevent an excess increase in tariffs, restrict vertically integrated companies and define the zonal borders of electricity markets).
4. A state-owned stock holding company should be the trade system administrator.
5. The procedure for disconnecting electricity supplies should be legally defined.
6. A package of draft laws should regulate the issues pertaining to re-distribution of the property of RAO UES.
7. The problem of heat energy should be considered together with the package of draft laws on electricity.
8. The mechanism governing concessions as a means of attracting investments into the electricity sector should be used.
9. The package of draft laws should also envisage the main rules governing the functioning of the guaranteed supplier.
10. The following structure should be established for regional grid companies: 33% for the municipal authorities, 33% for regional and 34% for federal grid companies.

In addition YABLOKO believes that it is important to create under the government a supervisory council for electricity reform. Such a council could comprise representatives of the executive and legislative authorities, as well as public organisations and academic circles.

YABLOKO's representatives will insist on adopting principled decisions on a meeting of the working group scheduled for 26 August 2002.

See also:
Energy Sector Reform