UES under western eyes

30 September 2003


Unified Energy Systems (UES) of Russia has confirmed that it plans to hand over management of the Northwest power station near St Petersburg to a consortium of western companies, including E.On of Germany and Fortum of Finland.

The Russian government plans to break up UES over a five years period into privatised generating companies, and a national grid network which will remain under state control. One company involved in the process at an early stage was Enel of Italy, which started a joint venture with Russia's ESN and now manages Kolenergo, in Murmansk.

Enel believes that its experience with Italy's energy liberalisation qualifies it to play a role in the reform of UES, and it plans to tender for one of the 10 generating companies that make up UES. After privatisation four of these will incorporate hydroelectric stations, and the remaining six, thermal power plants. Enel hopes to win a management contract for one of the thermal generators.



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