Getting the Deal Through - Electricity Regulation 2018: Russia

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The last of the projects being constructed under the capacity supply agreement programme is due to be completed in 2018 meaning that the cost of the market of the associated capacity payments will taper off until 2028. As the roll out of new capacity under the programme has exceeded growth, government focus is now on removing excess generation capacity.

The transmission and distribution sectors continue to be the focus of legislative activity with efforts to simplify the grid connection process, to require network operators to bear the full cost of network losses and to curb tariff growth.

Further measures have also been introduced to improve payment discipline in the retail market. The Ministry of Energy has also been working on a model for reform of the retail market that would allow larger customers to procure power directly from generators and to encourage competition in the supply sector.



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