Power Market Reform↓
On 30 September, 2005, at the session of its Board of Directors, Minutes No. 204, the OAO RAO UES of Russia decided to reorganize the JSC WGC-3 in the form of affiliating the following companies: JSC “Kostroma SDPP”, JSC “Cherepets SDPP”, JSC “Pechora SDPP”, JSC “Yuzhnouralsk SDPP”, JSC “Kharanor SDPP”, JSC “Gusinoozersk SDPP”.
On 17 October, 2005, the RF Government Decree "On introduction of alterations into the RF Government’s decrees on issues of the variances sector of the wholesale electricity (power) market of the transitional period" was signed. The Decree determined the term of startup and new rules of the variances sector of the wholesale electricity (power) market of the transitional period – the rules of the “balancing market”. On 19 October, the NP "ATS" started receiving of “day-ahead” applications, which define the prices in the wholesale market sector of variances from 20 October, 2005. The system operator began calculation of preliminary prices for the next day. In pursuance of the above-mentioned Decree, the generation companies of the JSC WGC-3 – the Kostroma, Cherepets, Gusinoozersk and Kharanor SDPPs –from 20 October, 2005, began their activities in the balancing segment of the wholesale electricity market (WEM).
On 22 November, 2005, the extraordinary general meetings of the companies making up the JSC WGC-3 took the decision on reorganization of the JSC “Kostroma SDPP”, JSC “Cherepets SDPP”, JSC “Pechora SDPP”, JSC “Yuzhnouralsk SDPP”, JSC “Kharanor SDPP” and JSC “Gusinoozersk SDPP” in the form of affiliation to the JSC WGC-3.
Starting from 01 January, 2006, the Affiliated and Dependent Company of the JSC WGC-3, the “Yuzhnouralsk SDPP”, acquired the status of an entity of the wholesale market of electricity (power), and started its full-scale participation in sales of electricity in the WEM, among others in the free trade sector and in the WEM balancing sector. Prior to that time, the JSC “Yuzhnouralsk SDPP” participated in the WEM balancing sector through the Chelyabinsk sales company on the basis of the “one stop” principle.
On 24 January, 2006, by its Order No. 52 the OAO RAO UES of Russia defined the steps on preparation for the opening of a new wholesale market of electricity (power) of the transitional period planned for 1 April, 2006. Due to a number of objective causes, opening of the NWMEP was delayed until 1 July, 2006.
On 28 March, 2006, by its Order No. 63-ý/3, the Federal Tariffs Service of Russia (FTS) introduced alterations into the Order issued by the FTS of Russia on 29 November 2005, No. 554-ý/2, “On granting the entitlement to participate in the regulated sector of the wholesale market of electricity (power)”. The FTS Order granted to the JSC WGC-3 the status of a participant of the WEM regulated sector. The JSC WGC-3 was entered into the WEM entities register.
On 01 April, 2006, the JSC WGC-3 was converted to a single share thus concluding the procedure of the Company restructuring. A Contract on joining the WEM mercantile system was signed with the NP “ATS” and other WEM infrastructure organizations. Within the framework of the Contract, the JSC WGC-3 made its planning and management of electricity sales centralized to be conducted by the executives of the JSC WGC-3.