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07.12 2012 11:23:59

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Conflict of interests in the Caucasus

by Liliya Brueva

The success of a program to consolidate the Territorial Grid Organizations (the Russian acronym, TSO) matters a lot for the improvement of conditions in Russia’s electric grid sector. For the time being, though, TSOs remain the weak spot of the electric grid sector, with their modernization hindered by the frequent changes of their owners, while the absence of due control over their expenses, which are incorporated into their tariffs, leads to unjustified tariff hikes. The consolidation of TSOs often runs into resistance from municipal authorities, as is now the case in the North Caucasus.

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