Russian generation assets of INTER RAO Group sell electricity at the Wholesale Electricity Market (WEM).
The majority of generated electricity is sold under regulated bilateral agreements. Buyers include electricity retailers and large enterprises located in the first pricing zone.*
The remaining electricity is sold at competitive markets (balancing and next-day).
* Source: energy markets in the Russian Federation
Russia currently has wholesale (WEM) and retail markets of electric energy and power.
For the purpose of electricity price control, the whole country is split into:
- the first pricing zone (European Russia and Ural)
- the second pricing zone (Siberia)
- three non-pricing zones (Kaliningrad Oblast, Far East, Arkhangelsk Oblast and Komi Republic).
The state regulates electricity prices in non-pricing zones.
The first and the second price areas feature:
- regulated sector of the wholesale electricity market with regulated power and energy delivery agreements
- spot next-day electricity market operating on a platform provided by the Trading System Administrator (JSC ATS, http://www.atsenergo.ru/)
- balancing electricity market operating on a platform provided by the System Operator (JSC SO UES, http://www.so-ups.ru/)
- short-term power market offering competitive monthly power distribution under annual contracts managed by the System Operator
- non-exchange markets with non-regulated electricity contracts (NEC)
- NEC exchange market operated within Moscow Energy Exchange (http://mosenex.ru/)
- potential long-term power market
A number of state-owned infrastructure enterprises regulate generation, distribution and consumption of electricity in Russia to ensure supply of electricity to all regions of the country:
- System Operator of UES
- Trading System Administrator (via its Settlement Center)
- Moscow Energy Exchange
- Federal Grid Company of UES
Alfa Bank provides clearing and settlement services for market players in pricing zones, while Sberbank provides these in non-pricing zones.
Suppliers agreed to maintain readiness to ensure utilization of generation equipment in power trading zones.