OREANDA-NEWS. On July 03, 2007 Presidential Plenipotentiary Representative to the Urals Federal District Vladimir Latyshev, members of the Working Group of RAO "UES of Russia" headed by Chairman of the RAO UES Management Board Anatoly Chubais and the Governors of the regions comprising the Urals Federal District held a meeting in Chelyabinsk to discuss the current state and the development prospects for the District's electricity sector, reported the press-centre of  RAO "UES of Russia".

The meeting, chaired by Petr Latyshev, discussed the interim results of the efforts being undertaken by the RAO UES entities and the administrations of the Kurgan Region, Sverdlovsk Regino, Tyumen Region, Chelyabinsk Region, Khanty-Mansi Autonomous Okrug and Yamalo-Nenets Autonomous Okrug under the Agreements on carrying out priority measures to build and modernize the electric power facilities signed in 2006-2007.

These Agreements were a response to the burgeoning growth in electricity and heat demand in the above regions of Russia, far exceeding the average for Russia, which was primarily due to the rapid expansion of the region's economy and social infrastructure. Specifically, electricity consumption in the Tyumen energy system grew 8,85% in 2006 year-on-year. In the Chelyabinsk energy system, consumption grew 7,01%, in the Sverdlovsk energy system, by 4,35%, and in the Kurgan energy system, by 4,73%. The consumption growth figure for the entire Russia in 2006 was 4,2%.

This trend has continued into this year. In June 2007, energy use grew 8,8% yoy in the Sverdlovsk Region, 7% in the Chelyabinsk Region, and 6,4% in the Tyumen Region.

The Agreements take into account the individual requirements of each regional energy system and are designed to bring new generation capacity on line, increase the network capability, create the conditions needed for connecting new customers to the power grids, increase the capacity of the existing consumers, and prevent power shortages as electricity consumption grows.

It should be noted that similar trends are observed in some other regions of Russia. To date, RAO "UES of Russia" has signed similar agreements with 12 administrations of the regions experiencing energy shortages during the so-called "peak load periods". Another 17 agreements are expected to be concluded before the end of the year.

So far the process has been fully completed only in the Urals Federal District. The Agreement with the administrations of the Tyumen Region, Khanty-Mansi Autonomous Okrug and Yamalo-Nenets Autonomous Okrug was signed on 31 July 2006, with the Sverdlovsk Region authorities on 14 December 2006, with the Chelyabinsk Region government on 25 December 2006, and with the Kurgan region administration on 11 May 2007.

The Conference participants stated that the generation and transmission grid development projects in the Urals area provided by the Agreements are being implemented according to schedule, whereas the distribution projects are ahead of schedule.

It was noted that the distribution grid companies operating in the Urals Federal District have been able to timely satisfy all requests for new user connections. Out of the 16071 applications for 3,200 MW of capacity, the companies have satisfied 15933 applications (2,400 MW), and 138 more applications are pending.

The regional officials were instructed to assist, within their authority, in the approval of the grid connection charges for OAO "Tyumenenergo", OAO "Sverdlovskenergo", OAO "Chelyabenergo", and OAO "Kurganenergo".

The Conference participants also backed the initiative to create Coordination Councils under the Governors of the regions comprising the Urals Federal District. These Councils will comprise working groups specialized in different areas. The working groups will comprise representatives of the regional authorities and the energy companies operating in the region. One of these bodies is expected to be placed in charge of controlling the implementation of the investment projects provided by the Agreements.

The Tyumen Region Governor, heads of the Khanty-Mansi and Yamala-Nenets Autonomous Okrugs were given a recommendation to review the suggestions of RAO "UES of Russia" to regarding amendments to the Agreements covering the transmission (trunk grid) facilities, which is due to the increased amount of the investment programmes approved for these regions.