It is necessary to seek to establish market prices for all types of fuel

30 september 2015 | "Kompaniya"

The business weekly magazine 'Kompaniya' writes about the problems of domestic electric power industry, considering the main problem of the sector at the moment to be the lack of understanding of the companies (not only in the long term, but even in the medium term) regarding the rules of the game can be changed. According to the newspaper the problem is also resultsed from instability of the legal framework and over-regulation.

Alexander Amiragyan
Alexander Amiragyan
Department for Fuel and Energy Sector

'Moreover, it is worth to remember that today not only the electric power industry is overregulated, but also the gas industry,' Alexander Amiragyan, the expert of the Department for Fuel and Energy Sector of the Analytical Center, commented on the situation to "Kompaniya". According to his opinion, one of the problems of electric power industry remains the weak inter-fuel competition in thermal generation that is the lack of competitiveness of the coal generation compared with the gas one. 'The problem is caused by setting the upper limit of the gas price supplied by 'Gazprom', while coal prices are determined by the market,' said the expert. From the environmental point of view displacement of coal with gas can have a positive impact, but we should seek to the establishment of market prices for all types of fuel, according to the expert.

The publication also notes that in addition to market system problems there is a macroeconomic instability that leads to an increase in the overdue debt: according to the Analytical Center data on the purchase of electricity on the wholesale market to the end of April amounted to more than 50 billion rubles and it continues to grow.