MOSCOW, February 1 (RIA Novosti) - Russia will maintain electricity tariff subsidies for households at least until 2015, the president told a Kremlin news conference Thursday.
Vladimir Putin also said natural gas prices will rise gradually, on a step-by-step basis, increasing 15% this year and 25% in 2008.
Domestic gas prices will remain 30-45% below export prices, due to the absence of transit charges and export duties. Gas is sold in Russia at below market rates, which is having a negative impact on other branches of the power sector, and is dangerous for the economy as a whole, Putin said.
The industry and energy ministry said last December that the liberalization of Russia's gas and electricity prices would not affect household utility rates, which will continue to be regulated by the state.
Domestic gas prices are expected to grow from the current $45.30 per 1,000 cubic meters to $110-$120 in 2010, and to $130-$140 in 2015, compared to an average price of $230 per 1,000 cu m charged by energy giant Gazprom for its exports to Europe.
Domestic wholesale customers currently pay $40 per 1,000 cubic meters of gas, compared with a flat rate of about 20 rubles ($0.76) per adult resident per month paid by Russian households.
Russian electricity monopoly Unified Energy System charges an average of 1.6 rubles (6 cents) per kilowatt hour for electricity supplied to households.
