Generation Structure, Prices, and Tariffs in the Russian Electric Power Industry in 2009-2018

Keywords: electricity market, industrial organization, electric power industry reform, deregulation


The paper aims to summarize and analyze the statistical data on the generation structure and price behavior in the Russian electric power industry and, based on the analysis, make a statistical contribution to the discussion on the outcomes of the electricity reform in Russia. A brief review of this topic is provided. The study states that the electric power industry should be regarded as a combination of four sub-industries when regulation, market design, and industrial organization problems are discussed. These four sub-industries are generation, transmission, distribution, and sales because of different regulations applied to these businesses. The main trends in the retail price index and some other indexes in the four sub-industries are observed from 2009 to 2018. The trends in electricity consumption and generation structure are discussed as essential components of economic processes in the industry. The findings suggest that the four sub-industries make different contributions to the overall growth of the electricity supply costs for end consumers. Most growth was determined by regulated government-granted monopolies in network businesses (transmission and distribution companies). The sales business is represented in the research by suppliers of last resort.