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In recent years Electric Power Industry of Russia has undergone radical changes: change in State regulation system of the industry, competitive electric power market formation, creation of new companies.
Reorganization is aimed at increasing efficiency of power plants operating, creating conditions for Electric Power Industry development on the basis of stimulation of investment activity and finally providing consumers with sustainable and regular power supply.
During the restructuring period sector structure changes as well: separation of natural monopoly functions (power transmission, dispatching) from potentially competitive ones (production and supply, repair works and services); new structures responsible for separate activity types are being created instead of former vertically integrated companies which exercised all the above mentioned functions.
Generation, sales and repair companies will become mainly private and enter into mutual competition. On the contrary, State control tightening occurs in natural monopoly spheres.
Thus conditions for competitive electric power market development are being created, which implies that market prices are not regulated by the State, but formed on demand and supply basis, while market participants compete reducing their costs.
In 2005 restructuring process involved most of JSC-Energo companies, and considerable part of them has been split up by the end of the year. Thus, in the course of the reform former monopoly structure of electric power industry is being liquidated: the majority of vertically integrated companies disappear, and new companies to be established within the target sector structure take their place. Almost all of them have already been created, but however we need some time to complete their restructuring, in the course of which every company will be established according to its target configuration.