The market launched on 1 September 2006 replacing a regulated market with a system of bilateral contracts.

September-December 2006 saw 5,175 bilateral contracts, with13,780 regulated contracts completed for 2007.

The percentage of electricity sold at unregulated prices will steadily increase from the current 5 percent of the forecast. Full liberalization of the wholesale electricity market is scheduled for 2011.

In September-December, the average weighted price stood at RUB385/MWh ($15/MWh). The average weighted price in the day-ahead market during the first two months of 2007 was RUB442/MWh ($17/MWh).

UES said that in Siberia higher output from hydro generation had pushed power prices to as low as RUB148/MWh ($6/MWh) against an average regulated wholesale rate for electricity of RUB235.4/MWh ($9/MWh) in 2006.

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