RAO Unified Energy Systems of Russia (UES, Moscow) will begin setting up wholesale generating companies as a result of its split with other shareholders in the holding company's subsidiaries, said Mikhail Abyzov, deputy CEO of UES.

Each of the wholesale generating companies' algorithms have been developed for the outgrowth of power plants from the energy system and their transfer to the generating companies. An individual approach will be adopted for each case to regulate all interests including minority shareholders, regional administrations and energy system management.

Wholesale generating companies will be set up like a financial holding company, owning shares in the power plant. UES plans to set up 10 wholesale generating companies to include power plants belonging to UES and to the regional energy companies, according to UES. Generating companies that are stable and function effectively in market conditions should be established by the start of 2004.
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