On September 4 UES received documents from the Federal Tax Service on the registration of OGK-5 Holding and TGK-5 Holding, being established to separate wholesale generating company OGK-5 and territorial generating company TGK-5 from the monopoly, putting an end to the first stage of reforms, UES said.
Russia's power sector is undergoing radical changes aimed at increasing the efficiency of power plants and developing the industry by attracting investment.
Once the reforms are complete, the potentially competitive sectors of the industry - generation, sales and repair companies - will become mainly private and will compete with one another. However, natural monopolies - power transmission and dispatching - will remain state-controlled.
During the second stage expected to last until mid-summer of 2008, the parent company UES will be divided, and its shareholders will receive the shares of core electricity entities (wholesale generating, territorial generating and federal grid companies) under UES current control, proportionate to their holdings in the monopoly's charter capital.
