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. Last Updated: 07/27/2016

2010 Budgets for State Power Firms Cut 13%

State-run electricity companies will invest 600.8 billion rubles ($19.5 billion) next year, or 13.5 percent less than planned, Cabinet spokesman Dmitry Peskov said Tuesday after the government approved their 2010 budgets.

The biggest source of the financing will be tariff revenues of 216.4 billion rubles, while 108 billion rubles will come from the federal budget and 72 billion rubles will be borrowed either from banks or on the market, he said.

EnergoAtom, a fully owned unit of Atomenergoprom, and the Federal Grid Company have the biggest investment programs, at 174.8 billion rubles and 170.9 billion rubles, respectively.

Priority projects approved Tuesday include power supplies to the electricity-hungry regions of Khakasia, Primorye, Tyumen and Krasnodar. Other top goals included providing electricity for the Olympics sites in Sochi, reconstruction of the Sayano-Shushenskaya hydro power station in Khakasia and building grids along the East Siberia-Pacific Ocean pipeline.

State-run generators will have to build 2 gigawatts of capacity, while private power firms in Russia are to add 3.8 gigawatts of new capacity in 2010, Prime Minister Vladimir Putin told the Cabinet meting.

"New investors have to fulfill all the obligations they took upon themselves," Putin said, referring to private generation companies. "The electricity deficit was the most important problem that the industry was facing in the recent years of active economic growth. We should not let this happen during the postcrisis recovery."

The Energy Ministry forecasts a growth in electricity consumption of 0.4 percent next year, an increase of 1.8 percent in 2011, and a jump of 3.1 percent in 2012.