The B2B-energo (business-to-business) information, analytical and trading system was set up for UES in 2002 as an electronic market for power sector services and products, and approved by the company's management board.
The UES press service said, "The UES management board has decided, starting from the first quarter of 2007, to make at least 60% of total competitive purchases for subsidiaries of the energy holding electronically."
The company's move into e-commerce was aimed at cutting procurement costs by 50%, and bringing down prices of goods and services, as part of the company's wide-ranging reforms aimed at modernizing the power sector and improving efficiency.
The press service said B2B-energo auctions had already allowed UES to raise the company's share of open tenders for services and equipment from 40% in 2004 to 77% in 2005, with prices down by an average of 8%.
"B2B-energo offers vast opportunities to make any purchases envisaged by the UES procurement plan," the company said, adding that the system was ready for use, and deals would be closed as part of company's five-year investment plan.
Since B2B-energo was set up in 2002 for UES, turnover topped 50 billion rubles (about $2 billion).
Currently, a total of 350 open tenders and auctions are ongoing within the system, involving 6,400 companies and organizations from 30 countries.
