The Energy Regulation and Markets Review - Stikeman Elliott

Russia
Electric power sales companies are not classed as natural monopoly entities in
Russia, though many of them remain large enough to influence this sales market.
Production of electric power in the gas industry is consolidated in a vertically
integrated company – Limited Liability Company Gazprom Energoholding (a 100 per
cent subsidiary of Open Joint-Stock Company Gazprom). The company holds over 50
per cent in the open joint-stock generating companies Mosenergo, OnGK-2 (including
the recently absorbed OGK-6) and TGK-1.
Predominant within the structure of the oil industry are approximately 10 major
vertically integrated open-joint stock companies (Rosneft, Lukoil, Surgutneftegaz, TNK-
BP, Gazprom oil and others), almost all of which are privately owned, with a substantial
foreign stake.
Since the coal industry was privatised and restructured, all coal is mined by privatelyowned
organisations. Moreover, these have being gradually undergoing concentration,
the result being formation of 16 big holding companies with an approximate 80 per
cent share in all coal mining. A special place among these is occupied by five coal-steel
companies that mine virtually all the coking coal and use it as an energy source for metal
production.
ii Transmission/transportation and distribution access
The main principles of state regulation and control in the electric power sector include
provision of non-discriminating access to:
a the services of natural monopoly entities in the electric power sector;
b the services of organisations within the commercial infrastructure of the wholesale
market;
c information on the functioning of the wholesale and retail markets; and
d information on the activities of participants in the electric power industry. 46
In this connection, on the territory of Russia, the following have been unified:
a Rules for non-discriminating access to electric power transmission services and
provision of these services;
b Rules for non-discriminating access to operational dispatch management services
in the electric power sector and provision of these services;
c Rules for non-discriminating access to the services of the administrator of the
wholesale market trading system and provision of these services; and
d Rules for technological connection of energy-receiving devices belonging to
electric power consumers, of electric power production facilities and electricity
grid facilities to electricity grids. 47
In the sphere of gas supply to organisations owning gas supply networks, it is prohibited
to create barriers to independent organisations accessing the gas market. 48 A procedure
46 Article 20, Clause 1 of the Federal Law on Electric Power.
47 Resolution of the Government of the Russian Federation No. 861 dated 27 December 2004.
48 Article 26 of the Federal Law on Gas Supply in the Russian Federation.
230