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Structural and design issues in the Russian electricity reforms - a Policy Note (Russian)

The Russian electricity reform program is undoubtedly the largest and most ambitious ever undertaken, both in terms of the size of the industry being restructured, and in terms of the breadth, and depth of the changes being made or planned. Moreover, no other reform program has begun in such difficult circumstances for such a large system in one integrated effort. The broad policy conclusions of the analysis in this paper are summarized as follows: 1) The planned reform process is complex and will take a long time to complete, partly because any process for getting to the target model from where Russia is now, will be complex and lengthy, but also because the plan sets some intermediate objectives that add to the complexity and length of the process. The principal intermediate objectives that should be reconsidered are: a) retail competition for small consumers; b) the Creation of Large Generation Companies; and, 3) the transitional 5-15market- so-called because 5-to-15 percent of energy is to be traded in it. 2) The Reform Schedule for the Russian reforms calls for most of the significant business restructuring and market implementation to be completed some time in 2006, with only some share swapping required after that, to reach the target ownership levels by 2008. If this schedule is met with slippage of no more than (say) one year, Russia will have accomplished more, faster, than almost any other major electricity reform program has done. Perhaps this is possible in the Russian context, but those in charge of the reforms should closely watch progress against schedule, and be prepared to adjust schedules and expectations if and when necessary.


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    Russian Federation,

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    Europe and Central Asia,

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    Structural and design issues in the Russian electricity reforms - a Policy Note

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Structural and design issues in the Russian electricity reforms - a Policy Note (Russian). Washington, D.C. : World Bank Group.