Russia's Gas Sector: The Endless Wait for Reform?

Author:

Ahrend Rudiger,Tompson William

Publisher

Elsevier BV

Reference51 articles.

1. According to RAO UES, the 'federal' power stations paid FEC prices for 98.0 per cent of their natural gas in 2003, down slightly on 99.2 per cent in 2002. By contrast, only 71 per cent of the natural gas supplied to the regional energos in 2003 was at FEC tariffs (72 per cent in 2002). In both cases, the average mark-up to FEC for 'above-quota' gas was 30 per cent. In this context, it is important to note that the energos account for 87.6 per cent of gas consumption in the UES system. Thus, it would appear that UES plants in 2003 bought 25.6 per cent of their natural gas at prices averaging 30 per cent above FEC tariffs, making for an effective price for power;This suggests that the vast majority of industrial consumers are either unable to deal directly with non-Gazprom producers or are at least unaware of the possibility of so doing

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