CHUBAIS ON CONSISTENT REDUCTION OF ELECTRIC ENERGY TARIFF GROWTH

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ST PETERSBURG, April 24 (RIA Novosti) - Russian joint stock company "Unified Energy Systems of Russia" (RAO UES Rossii) speaks against energy companies' entering the wholesale electric energy market, Anatoly Chubais, the head of RAO UES, said at a Saturday all-Russian conference of energy specialists.

Besides, Chubais suggested introducing the norm of social consumption with the fixation of the central tariff, "introduction of a centralized collection of all subsidies, removal of deep regional disproportions." "We believe the task will be understood and supported by the authority," he said.

This year, the growth of tariffs on electric energy is expected at 12.1% (inflation forecast is 10%), Chubais reported.

Next year, in Chubais' words, the growth of tariffs will total 9.5%, and in 2006, 7.5%.

"Thus, by 2006 we will reach our goal and the rates of the growth of tariffs will be within inflation," the energy holding head said.

In May the government may consider a package of bills on the new tariff policy proposed by RAO UES, Chubais said.

"Today we can state with satisfaction that we have been heard by the government, the tariff policy is approved, and May will see it considered at a government session with specific figures, not only on the whole for the country, but for regions as well," the energy holding head said.

The new tariff policy proposed by RAO UES Rossii consists in that tariffs on electric energy are fixed for three years and are calculated proceeding from the level of inflation.

Chubais expressed the hope that in June 2004, the government-considered tariff policy of the energy holding will be approved by the Federal Tariffs Service.

RAO UES Rossii will soon take the decision on the appointment of directors general of wholesale generating companies, Chubais said.

In the process of reformation, six wholesale generating companies will be created on the basis of thermal power plants and four - on the basis of hydroelectric power plants. At the first stage, wholesale generating companies will be created by 100%-affiliates of RAO UES Rossii on the basis of the energy holding-owned packages of shares and property complexes of federal power stations, he said.

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