Nuclear, Retrofits & Upgrades

E.ON, Enel, Gazprom, others want to bid for 25 per cent in Russia’s OGK-5

16 May 2007 – Six energy companies – German company E.ON, Italian company Enel and the Russian companies Gazprom, Novatek, Rusal and KES, want to take part in the auction for a 25 per cent stake in Russian electricity production company OGK-5.

The Russian daily Kommersant reported that the stake is to be sold on 6 June by the Russian electricity monopoly UES, as part of the reforms of the Russian energy market, for a starting price of 24.66bn roubles ($957m).

UES has launched a road show to publicise the auction, Kommersant said. The anti-monopolies authority has already received requests from the six groups, the newspaper said. The companies have until 28 May to register for bidding in the auction.

The rival bidders will have to raise their bids by 342m roubles in the first stage of the bidding, then by 200m roubles at each subsequent stage, Kommersant said.

OGK-5 has several nuclear power stations located in the fastest developing regions in Russia, including the Urals, and the company represents 4 per cent of Russian electricity production. The Russian electricity sector is currently in the midst of a complete overhaul.

UES is to be gradually dismantled, to allow a competitive market and separate structures for electricity production, transport and distribution to emerge.