OAO RAO UES (OAO Unified Energy System of Russia; russian: ЕЭС России or russian: Единая Энергетическая Система) was an

electric power Electric power is the rate at which electrical energy is transferred by an electric circuit. The SI unit of power is the watt, one joule per second. Standard prefixes apply to watts as with other SI units: thousands, millions and billions ...

holding company A holding company is a company whose primary business is holding a controlling interest in the securities of other companies. A holding company usually does not produce goods or services itself. Its purpose is to own shares of other companies ...

Russia Russia (, , ), or the Russian Federation, is a transcontinental country spanning Eastern Europe and Northern Asia. It is the largest country in the world, with its internationally recognised territory covering , and encompassing one-ei ...

. It controlled about 70% of Russia's installed electric capacity, 96% of its high-voltage grid and over 70% of its transmission lines. In addition to the Russian market, RAO UES exported electricity to

Scandinavia Scandinavia; Sámi languages: /. ( ) is a subregion in Northern Europe, with strong historical, cultural, and linguistic ties between its constituent peoples. In English usage, ''Scandinavia'' most commonly refers to Denmark, Norway, and S ...

and to other members of the CIS. The last head of RAO UES was

Anatoly Chubais Anatoly Borisovich Chubais (russian: Анатолий Борисович Чубайс; born 16 June 1955) is a Russian politician and economist who was responsible for privatization in Russia as an influential member of Boris Yeltsin's administ ...

History

Unified Energy System of Russia was established by Presidential Decree #932, signed on August 15, 1992, as an electric energy holding company. Most of the state-owned electric energy assets, such as thermal and hydroelectric power plants, transmission lines, state-owned shares in power, research & engineering, and construction companies were transferred to RAO UES, with the exception of any assets related to nuclear energy. In total, RAO UES owned more than 70 of the energy companies and more than 40 of the

power plants A power station, also referred to as a power plant and sometimes generating station or generating plant, is an industrial facility for the generation of electric power. Power stations are generally connected to an electrical grid. Many pow ...

with federal-level importance. It also owned the transmission system operator, Federal Grid Company, (or, RAO FGC, the current successor of RAO UES and the operator of Russia's wide area transmission network) and the system operator of the Centralized Dispatching Administration (OAO SO-CDA). The first head of the company was Anatoly Dyakov, who held the positions of president and chairman of the director's council.РАО ЕЭС России. Некоторые сведения
On May 30, 1997, shareholders abolished the position of president and appointed a chairman of the board, Boris Brevnov, who was a personal friend of First Deputy Prime Minister of the Russian Federation,

Boris Nemtsov Boris Yefimovich Nemtsov ( rus, Бори́с Ефи́мович Немцо́в, p=bɐˈrʲis jɪˈfʲiməvʲɪtɕ nʲɪmˈtsof; 9 October 195927 February 2015) was a Russian physicist and liberal politician. He was involved in the introduction ...

. On January 27, 1998, the director's council, headed by Anatoly Dyakov, removed Brevnov from his position. However, Brevnov did not recognize this action and removed Dyakov from his position instead. Eventually, former chief of the Russian presidential administration,

, was appointed chairman of the board; and the chief of the Russian presidential administration, Alexander Voloshin, was appointed chairman of the director's council (25 June 1999). In the mid-2000s, RAO UES suffered several failures in trying to keep up with demand. These were due to the decade-long practice of

disinvestment Disinvestment refers to the use of a concerted economic boycott to pressure a government, industry, or company towards a change in policy, or in the case of governments, even regime change. The term was first used in the 1980s, most commonly in ...

. The most significant failures were the 2005 Moscow power blackouts.

Reorganization

The reorganization of RAO UES started in 2006. The first stage of the reorganization was completed on September 3, 2007, during which subsidiary generating companies, WGC-5 and TGC-5, were individually spun off from the parent RAO UES. During a second stage of reorganization, all remaining subsidiaries of RAO UES were spun off (by July 1, 2008). This reorganization was seen as a massive

privatization Privatization (also privatisation in British English) can mean several different things, most commonly referring to moving something from the public sector into the private sector. It is also sometimes used as a synonym for deregulation when ...

of the power industry, with the goal of attaining about US$79 billion in investments. As a result, RAO UES ceased to exist after its merger into UES FGC, a Federal Grid Company. Altogether, six wholesale generation companies (WGC), 14 territorial generation companies (TGC), RusHydro,

FGC UES OAO FGC UES (russian: Федеральная сетевая компания Единой энергетической системы, Federalinaya Setevaya Companiya Edinoy Energeticheskoy Sistemy, Federal Grid Company of Unified Energy System) ...

(Federal Grid Company), SO-CDA (System Operator), IDC Holding, RAO ES of the East, and

Inter RAO UES Joint Stock Company Inter RAO UES (russian: Публичное акционерное общество «ИНТЕР РАО ЕЭС», short form: Inter RAO), traded as, is a diversified energy holding company headquartered in Moscow, Russia. Its ...

continue to operate as independent entities.

Shareholders

The Russian Federation owned directly, or indirectly, over 50% of the shares in RAO UES. The rest of the

stock In finance, stock (also capital stock) consists of all the shares by which ownership of a corporation or company is divided.Longman Business English Dictionary: "stock - ''especially AmE'' one of the shares into which ownership of a compan ...

was owned by minority

shareholders A shareholder (in the United States often referred to as stockholder) of a corporation is an individual or legal entity (such as another corporation, a body politic, a trust or partnership) that is registered by the corporation as the legal ...

. Shares were also traded on the MICEX and

RTS RTS may refer to: Medicine * Rape trauma syndrome, the psychological trauma experienced by a rape victim * Revised Trauma Score, a system to evaluate injuries secondary to violent trauma * Rubinstein–Taybi syndrome, a condition characterized by ...

stock exchange A stock exchange, securities exchange, or bourse is an exchange where stockbrokers and traders can buy and sell securities, such as shares of stock, bonds and other financial instruments. Stock exchanges may also provide facilities for t ...

References

External links

Unified Energy System - Russian language and English language
{{Authority control Companies based in Moscow Defunct electric power companies of Russia Energy companies established in 1992 Energy companies disestablished in 2008

History

Reorganization

Shareholders

See also

References

External links