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. Last Updated: 07/27/2016

UES Reduces Plans to Boost Capacity

Itar-TassIndustry and Energy Minister Viktor Khristenko, left, RSPP head Alexander Shokhin and Chubais at Tuesday's forum.
Unified Energy System has scaled back plans to increase generation capacity until it upgrades the country's grid system and secures fuel supplies, chief executive Anatoly Chubais said Tuesday.

UES will install 15 percent less capacity by 2011 than previously planned, Chubais said in a presentation to the Russian Union of Industrialists and Entrepreneurs, or RSPP. But its total investment plans remain virtually unchanged at 3.2 trillion rubles ($127 billion) for the period 2006 through 2010, because more investments will now be funneled into the country's antiquated power grid, he said.

Every UES unit is in talks with Gazprom and other gas producers to secure long-term supplies, Deputy Industry and Energy Minister Andrei Dementyev said at the same conference.

Chubais said electricity consumption would grow by about 3 percent this year, less than the 5 percent originally expected, because of unusually warm weather.

Vedomosti reported Tuesday that Gazprom had influenced UES's decision to ease up on building new turbines, as Gazprom did not want to provide them with subsidized gas. Neither UES nor Gazprom were immediately available to comment on the report.

Generating company OGK-2 plans to sell 6.2 billion shares, less than the 6.5 billion it said three days ago, a discrepancy that the first Russian power company to list in London called a "miscounting" and later a "clarification."

"We don't call this a mistake, we are clarifying the information," said Leonid Fink, a London-based spokesman for OGK-2. "This is the complete information and the IPO will be completed with this."

Also Tuesday, OGK-5, the power generator owned in part by Italy's Enel, said first-half profit rose 81 percent after it discounted a one-time tax gain from figures a year earlier. Net income advanced to 1.2 billion rubles ($48 million).

Bloomberg, Reuters