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Russia faces electricity deficit in dozens of regions - Chubais

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SOCHI, August 19 (RIA Novosti) - The shortage of electric power supplies threatens dozens of regions in Russia, the chief executive of the Russian electricity giant UES said Saturday.

"This [the shortage] means heavy regimes for us, and the threat of frequent accidents," Anatoly Chubais said during a meeting with Russian President Vladimir Putin.

Unified Energy System, which has stakes in 72 regional power companies and 37 federal power plants, has been suffering chronic revenue shortages due to its government-regulated tariffs, currently far below European market rates, as well as to low bill collection rates.

Freezing temperatures earlier this year put an additional strain on the struggling power network, but UES plans to continue moving to a competitive power market in 2006, and is expected to hold the first energy supply auction for 2007 at the end of the year.

Chubais said the investment program on development of Russia's energy sector for 2006-2010 should improve the situation. The program allocates 2.1 trillion rubles ($78.4 billion) on development of the energy sector.

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