Source Pravda.Ru

Presidential Advisor criticizes RAO UES restructuring

Russian Presidential Economic Advisor Andrey Illarionov has again criticized the restructuring of RAO UES. According to him, the cost of the Russian energy is higher than in the rest of the world, if it is calculated from the point of view of electricity sales' share in the GDP. The world average share is 2-2.5 percent of the GDP, while in Russia it will be 5.5 percent this year, he said.

He also doubted the necessity for reorganizing vertically integrated companies when reforming the sector. According to him, electricity is cheaper in countries where vertically integrated companies were preserved. He also pointed out that since 1997 technological losses of electrical energy in networks had increased from 8.5 percent to 12 percent.

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