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President's economic advisor reviews causes of Moscow blackout
RBC, 02.06.2005, Moscow 19:25:50.The energy crisis of May 25 became a natural result of what had been going on in the energy sector during last years, Andrey Illarionov, the President's advisor for economic issues, has told journalists today. In his opinion this surely was a technogenic accident, and such accidents happen daily throughout the country, yet the nation has not been confronted with an accident of such a scale before. Over the last five years, the probability of technogenic accidents has grown. Illarionov referred to changes in the economic mechanism of energy system operations throughout the country as one of the reasons for that. Earlier, the bulk of energy consumed by the Moscow region was produced inside the region, but now Moscow is buying cheaper energy from other regions. The equipment available is not meant for such a load. To solve the problems investments were required, but they never came in, and the advisor noted that RAO UES's net profit of RUR54bn (approx. USD1.9bn) must have been used for other purposes. Another reason is the splitting of Mosenergo into 13 companies. The Chagino substation is owned by one company and operated by another. The advisor also pointed to the low expertise of those who headed the company during the outage. He believes that any restrictions on investments into the grid must be lifted.
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