Translated material
Agency similar to Chubais
Rosenergo may become the successor to RAO UES of Russia
The Ministry of Industry and Energy, it seems, is beginning to implement the idea of Anatoly Chubais, expressed in May to Vladimir Putin, about the need for state control over the electric power industry after the reorganization of RAO UES of Russia. Yesterday, Minister Viktor Khristenko told reporters that the Federal Energy Agency (Rosenergo) will deal with this. The head of this agency, Sergei Oganesyan, recently left his post, but contrary to expectations, the agency itself was not disbanded. Mr. Khristenko said that he already has a candidate for the position of head of Rosenergo, but did not name it. Vremya Novostei's source at RAO suggested that one of the energy holding's top managers (perhaps a member of the board, head of the reform management center, Yuri Udaltsov) will most likely move to the civil service. However, they are unlikely to agree to leave before June 30 next year (that is, when RAO ceases to exist), since they are entitled to a substantial reward for working until the last day of the energy holding.“Rosenergo is seen as a platform for supporting the electric power industry after RAO UES of Russia leaves... goes into another state in the summer of 2008,” Mr. Khristenko said, a little confused. He did not disclose details. A source close to his circle says that a final decision regarding the status of Rosenergo has not yet been made, although the idea of delegating some of RAO's functions to it exists.
As you know, Rosenergo, created during the administrative reform of 2004, was supposed to oversee all state-owned enterprises in the fuel and energy sector. However, de facto, all its functions were performed by the Ministry of Industry and Energy, since big business could not accept the fact that it would have to resolve issues not at a high level. By and large, the only area where Rosenergo could prove itself was the coal industry. Mr. Oganesyan, delegated to the post of head of the agency by Rosneft, has long asked to resign due to this state of affairs, but former Prime Minister Mikhail Fradkov did not sign the statement. The new head of the cabinet, Viktor Zubkov, almost immediately agreed with the dismissal of Mr. Oganesyan. However, many market participants expected that with this resignation the ministry itself would be reorganized, for example, divided into the Ministry of Energy and the Ministry of Industry, and Rosenergo would not have a place in this scheme. But this has not happened yet.
Back in May, Vladimir Putin, at a meeting with Anatoly Chubais, indicated that “the role and importance of the state in the electric power industry has increased.” The head of RAO in response said: “It seems to us that it would be correct if, taking into account the reorganization of RAO UES, one of the ministries in the government would appear in the legal successors of RAO next year, which, in our opinion, would only increase the responsibility (of the new owners of energy companies. - Ed. ) for the execution of documents (investment programs for the construction and modernization of energy facilities. - Ed. )... But if there is no RAO UES, and sanctions are prescribed, then the question is who will ensure their implementation " Vladimir Putin did not respond to this.
Last week, Deputy Chairman of the Board of RAO Yakov Urinson, who oversees the corporate center of the energy holding, told Vremya Novostey: “I hope that after the elections (of the Russian President - Ed. ) a government will be formed, and the Ministry of Industry and Energy will perform exactly those functions , which the state must fulfill in relation to the electric power industry. That is, some of the functions of RAO will be taken over by the federal grid structure, some by the state, and some by the market mechanism.”
Functionally, according to him, the industry will not suffer from the reorganization of RAO: “System reliability is ensured by the system operator; it will be completely under the control of the state. Network connections - interregional, backbone - are provided by the Federal Grid Company, which will be controlled by the state either 75% plus one share, or 50% plus one share. Regional network interconnection companies will also be controlled. Hydrogeneration, which, like nuclear power, is always loaded into the database (that is, loaded first of all to the maximum volume. - Ed. ), is also controlled by the state. Territorial and wholesale generating companies will work as they do. Let's say, a bakery, a meat processing plant or a machine-building factory - no matter what ownership they have - will comply with all technical safety requirements. After all, there is Konstantin Pulikovsky (head of Rostechnadzor. - Ed. ) with his team, who monitors compliance with all technical requirements, there is the Ministry of Industry and Energy, which ensures all current and long-term settings for the industry through the general layout of energy facilities. That is, the system will work, and the reliability of energy supply will be ensured.”
Market participants support the idea that there should be a government body responsible for the electricity sector. “I am a big opponent of the existence of RAO in its current form,” says Vladimir Kiryukhin, general director of Eurosibenergo (manages Oleg Deripaska’s energy assets), “but it is impossible for it to leave an empty place. There must be someone who will systematically deal with the industry - the same balance sheets, fuel supply in the end.” And RAO adds that one of the main functions of the new government agency should be rule-making, since it will certainly be necessary to clarify the rules of the game in the market.