UPDATE 1-Russia energy ministry to stand firm on power reforms

Fri Nov 21, 2008 1:20pm GMT
 
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* Ministry resists calls to freeze price liberalisation

* Says sector over-regulated, calls for change

* Acknowledges trend of slowing growth in demand for power

(Adds quotes on demand slowdown, streamlining oversight)

By Olga Popova

MOSCOW, Nov 21 (Reuters) - Russia's energy minister said on Friday he will oppose attempts to slow the liberalisation of electricity prices, which some industries want to curb at least until the financial crisis passes.

"A great deal of requests have been coming in from various industries proposing we freeze the tariff system during these troubled times," Sergei Shmatko told reporters.

"The energy ministry is sticking to the decisions that were made during the liberalisation of the electricity market."

The liberalisation calls for prices gradually to rise to market levels by 2011, raising the cost to consumers while allowing power producers to become profitable and self-reliant.  Continued...

 

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