UES, Norilsk To Create Energy Company

The board of Russian power grid monopoly UES has decided to create an energy company jointly with the national metals giant Norilsk Nickel and lease it the assets of a regional utility for 10 years, UES said.

Now UES is working on a reform plan under which generating assets are to be privatized while distribution assets remain in state hands.

UES is to lease to the new firm, Norilsk-Taimyr Energy, the assets of Taimyrenergo, which will also receive the assets of Norilsk Nickel's energy arm Norilskenergo.

The UES statement said it would hold 49 percent of the new firm and Norilsk Nickel 51 percent, as Norilskenergo's installed capacity is higher than that of Taimyrenergo.