Electricity and Heat Market

The consumer market in electricity and heat energy

Power engineering is the only sector with products and services, consumed by all industrial sectors and the domestic sector.

Supplies of electricity and heat energy to the consumer market. In 1999 the energy-supplying companies within the Holding Company supplied the consumers of their regions with 567.6 billion kWh of electricity and 453.6 million Gcal of heat energy. In so doing they provided approximately 85 per cent of all electricity supplied and 44 per cent of all heat energy supplied on Russia’s retail market in electricity and heat energy. A number of consumers received electricity directly from FOREM (2.2 per cent of the total amount of electricity supplied to consumers) or from an independent operator on the wholesale market (0.02 per cent).

The energy-suppliers within the Holding Company fully satisfied the increased demand for electricity thanks to increased purchases of electricity from FOREM and also due to increased electricity production at their own hydro power stations.

Structure and dynamics of the consumer market. The structure of the consumer market in electricity is dominated by industrial consumers with a share of 49 percent of all electricity supplied, of which the fuel industry accounts for 11 per cent, non-ferrous metallurgy for 9 per cent, iron and steel for 7 per cent, heavy engineering for 7 per cent, chemicals and petrochemicals for 6 per cent. Transport and communications companies consume 10 per cent of all electricity supplied.

For the first time in the last ten years there has been an increase in the amount of electricity supplied as compared with the previous year: supplies to industrial companies were up by 5.6 per cent and to the railways by 13.7 per cent. At the same time, the decline in the consumption of electricity by agricultural production enterprises has continued, with a reduction of 10.6 per cent in 1999.

The structure of the consumer market for the Holding Company’s heat energy is dominated by industrial consumers, with 30 per cent, and the residential consumers, with 41 per cent.


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