Profits drop as UES continues break up

8 August 2005 – The Russian utility, Unified Energy System, has reported a 35 per cent fall in year-on-year net profits as it continues to privatize the national electricity sector.

Net profit returned for 2004 fell to $609m, while the revenue it returned from its core activities totalled almost $1.5bn, $526m less than in 2003.

The company said the downturn in results was due to the lower electricity tariffs charged by the newly created Federal Grid Company and UES’ Central Dispatch Control. The drop was also attributed to the fact that the company has seen less revenue from electricity exports after it relinquished export/import control to the private company Inter RAO UES.