Interfax cited Mr Vladimir Putin Prime Minister of Russia as saying that the government will recommend that RusHydro and Rosatom limit electricity rate hikes in 2011.

He said that "We have announced plans to liberalize the electricity market and we are not going back on that. However, I stress that the existing tariffs are already appealing for investment in the sector. Therefore, we will recommend that the companies with state participation RusHydro and Rosatom limit rate hikes next year."

Mr Putin said "In order to implement their development programs, to build and modernize generating capacity, they must find reserves and reduce internal costs and inefficient spending. He said that I believe that the owners of the private generating companies must proceed along the path of limiting tariff increases. We can't lay the entire burden on the companies with state participation."

Mr Putin recalled that the law provides for limiting price requests on capacity where there is little opportunity for real competition in electricity supplies. He said that "The FAS [Federal Antimonopoly Service] should put that authority to good use."

Mr Putin said "The regions and electricity companies must take a more attentive approach to the issue of implementing investment programs to grid management, synchronizing the schedule for construction and modernization of facilities making them smoother, moving some things back. This must be done in order not to place an excessive burden on consumers next year."

He said that a government resolution will be approved soon allowing changes to the dates for carrying out investment programs.

(Sourced from Interfax)