The liberalisation of the power industry in Russia and Germany: comparative analysis

A stable supply of cheap electricity is essential for economy. The network monopoly in the German power industry caused the spatial division of country between corporations and overpriced electricity. The liberalization was provided for the access rights of the third parties to the private transmission facilities. In the Soviet Union was build the centralized power system. The power industry privatization was founded in 1990. The liberalization consists in the splitting of OAO RAO «Unified Energy System of Russia». Neither in Germany nor in Russia led the liberalization to the competition intensification and reduction of electricity prices, but led to the property redistribution in favour of vertically integrated companies.

liberalization, privatization, energy policy, electricity market, Russian Federation, Federal Republic of Germany, monopoly, vertically integrated companies, electricity prices, integrated power system