Major drop in wholesale electricity prices unlikely in 2014-2016 - ministry
MOSCOW. Oct 3 (Interfax) - A major drop in electricity prices on the wholesale market is not expected in 2014-2016, Deputy Energy Minister Vyacheslav Kravchenko said at a roundtable on business initiatives organized by newspaper Vedomosti.
He said prices will climb on the wholesale market over this period. "There are a number of reasons for this. In any case, gas prices will have to be unfrozen. Consequently, there will be growth in fuel component. We are soon expecting a peak in commissioning of facilities under capacity supply agreements, this will make a certain contribution, the price [of electricity] will go up steeply one way or another," Kravchenko said.
He told reporters on the sidelines of the roundtable that he was referring to the period of 2014-2016. In addition to capacity supply agreements, the launch of generating facilities operating on renewable energy sources will also have an impact.
"Therefore, it's wrong to say that there will be a decrease. There will be growth, but at an absolutely reasonable pace," Kravchenko said.
He also said it was wrong to say that prices for transmitting electricity will decrease. "A lot of money has gone into the sector recently, and we've managed to break the negative trend of equipment depreciation. Nonetheless, a large amount of equipment is in a sluggish state. New additional funds are needed in order to change this situation fundamentally," Kravchenko said.
