The evolution ofRussian power industry from monopoly to market operation

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Electric power is substantial to modern life. Many countries understood that economic development depends on efficient and reliable electric power industry operation. Restructuring of electric power industry offers many significant benefits to the industry itself and, as a consequence, to the country's economy and citizens. The reform process is characterized by introducing competitive relationships into the sectors of electricity generation and supply and redefinition of monopolized sector. Many countries have already completed the process of the linearization of their electricity markets and now Russia is on its way. This work describes and analyzes the ongoing restructuring processes of Russian electrical power industry. The previous industry structure and its operation are also covered by this thesis as the reasons for the reform are investigated. The work provides an explanation of the main reform steps and the function of the most important entities of the industry. Electricity market structure, relationships between the market participants, and their key functions are explained in this work. The work also discusses the implementation of competition in wholesale electricity market and the associated governmental regulation regarding the competitive structure creation.