Commenting about proposals on IPO and additional issues of shares for certain power-generating companies made by Unified Energy Systems (UES) head Anatoly Chubais, German Gref said that government permission was required and that he preferred IPO to additional issues of shares.
Gref was skeptical about Chubais' statement that it was necessary to switch from power energy tariffs set in accordance with "deflation" to setting tariffs that would take into account real inflation.
Tariffs were pegged to a forecast inflation rate of 8.5% this year, whereas real inflation is likely to exceed 11%.
Gref said that no proposals to raise power tariffs had been submitted to the ministry. The government is to consider issues concerning the Russian power sector's development December 8.
Chubais said earlier that Russia's power industry had lost $500 million in 2005 because of tariffs set in accordance with the "deflation" principle.
