ABSTRACT
This chapter explains the Russian reform in the international context by comparing reform outcome with the experiences of other countries. Historically, electricity generation emerged as a private initiative, but governments almost universally assumed control of the power sector. The socialist countries were no exception, and the plan of providing universal access to electricity was indeed one of the leading slogans of the early years of the Soviet Union. Liberalization was carried out gradually, with the share of electricity sold to industrial customers on regulated tariffs decreasing to zero between January 2007 and January 2011. The Federal Tariff Service and the Federal Antimonopoly Service, together with the System Operator, Market Council and Ministry of Energy, face an enormous task in creating the right incentives for the transmission and distribution companies and in safeguarding the efficient functioning of the state-of-the art electricity markets.
