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The Energy Ministry proposes to privatize part of the RusHydro facilities in the DFO - EastRussia | Far East

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The Ministry of Energy proposes to privatize part of RusHydro's facilities in the Far Eastern Federal District

To privatize part of the facilities of PJSC RusHydro in the Far East to create a competitive energy market was proposed by Pavel Snikars, Director of the Department of Electric Power Industry Development at the Ministry of Energy. The statement was followed during the visit on Monday by the delegation of the Committee on Energy of the State Duma of the Russian Federation on a number of energy facilities in Khabarovsk.

“The non-price zone (Far East) is still a market. The question is that there prices are considered differently. Not taking into account the free bid price. A different algorithm, but it is a market. DEC (a guaranteeing supplier in the Far East) is a single purchaser, sales companies are involved there. But this is a monopoly market, and in order for us to enter a competitive market, we need to privatize part of the RusHydro facilities, respectively. Because when you are one owner, you will compete with each other with your stations, but this is strange, it will not happen, ”the Interfax ministry representative quoted as saying.

Earlier, the Ministry of Energy announced the possibility of creating a third price zone in the Far Eastern Federal District (while two are in effect in the European part and in Siberia), providing for free competition. According to Interfax, RusHydro is discussing with the authorities the possibility of introducing a capacity modernization mechanism in the region’s power industry through capacity supply agreements (CDA).