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Electricity prices will keep growing – Energy Ministry

September 01, 2011, 13:48 UTC+3
The reason for this is the industry’s high demand for investments, needed for modernization
1 pages in this article

MOSCOW, September 1 (Itar-Tass) —— Electricity prices in the coming years in Russia will continue to grow, Energy Minister Sergei Shmatko told the media on Thursday.

"In the near term there will be no pre-requisites for a reduction of prices in the electricity market - the prices will continue to increase," said Shmatko.

According to the energy minister, "the reason for this is the industry’s high demand for investments, needed for modernization." The minister added that "the price of electricity consists of the wholesale price, transportation costs and sales surcharges, and while the investment component in the final rate is negligible."

According to Shmatko, "great influence is also caused by the gas prices, and the transition to equal profitability of domestic and export prices, expected in 2015 or later could also lead to a rise in the price of electricity in the coming years."

"The solution of the problem is seen in the control of the power grid’s costs, more precise planning, unification of equipment and the application of energy saving technologies," Shmatko concluded.

 

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