MOSCOW, November 29 (RIA Novosti) - The problem of cross subsidizing in the Russian electric power sector must be solved by 2007, a senior official from energy monopoly Unified Energy System said Tuesday.
Board Member Yury Udaltsov told a conference on new energy policy that cross subsidies must be excluded from tariffs and ideally be financed by the federal budget, he said, noting that UES would have to conclude long-term contracts on fuel delivery to give long-term guarantees for electricity tariffs.
"We are holding talks today with gas operators on this issue," Udaltsov said.
He said it was also important to form an anti-monopoly system in 2006 to regulate the wholesale electricity market.
Speaking about the company's reform, Udaltsov said UES had already established most inter-regional generating companies and all wholesale generating entities.
