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Electricity industry reform history

Some prerequisites for the electricity reform existed in the 80-ies of XX century. During this period in the electric power industry of the USSR, there are signs of stagnation: the production capacity is updated much slower than increased electricity consumption. A certain role was played by the Chernobyl accident, which resulted in the large-scale program of construction of nuclear power plants, most of which was to provide the densely populated European part of the country, was closed.

Then, in the 1990-ies, a system-wide crisis led to a sharp drop in industrial production and in this regard, the electricity consumption has decreased significantly, there was a surplus of generating capacity. At the same time, the process of upgrading the generating capacities practically stopped not enough money was invested in maintaining the grids of all levels.

Overall situation in the industry was as follows:

  • technological indicators (specific fuel consumption, the average efficiency of equipment, operating power of stations etc.), Russian energy companies lagged behind their counterparts in advanced industrial countries.
  • In the current economic system there were no incentives to improve efficiency, rational planning of modes of production and consumption, and energy efficiency.
  • the Collapse of the unified energy system of the country led in some regions to the power outages actually observed local energy crises. Dramatically increased the probability of major accidents with severe consequences.
  • Virtually no payment discipline, widespread barter payments and arrears.
  • the industry was financial and information "not transparent".
  • there were no preconditions for the market introduction of the new, independent players.

against this background was the inevitable structural changes in the electricity industry, the result of which would have to be incentives to improve the efficiency of energy companies, attracting investments in the sector, etc.


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