Belarus to scrap cross subsidies in electric power industry in 2014

Belarus plans to scrap cross subsidies in the electricity industry, First Vice Premier Vladimir Semashko said at the joint meeting of the two chambers of Parliament on 31 October, BelTA has learnt.

The country plans to scrap cross subsidies in the electric power industry next year and those in the heat power industry in 2015, he said.

The participants of the meeting talked about the plans for trade without exemptions in the Single Economic Space starting from 1 January 2015. The MPs were interested in whether large fuel and energy consumers would be able to buy them at the Russian domestic prices. “Theoretically, yes” Vladimir Semashko said. He noted, however, that there is a common misconception that it would be two or three times cheaper. According to Vladimir Semashko, Russia has recently increased its energy prices by approximately 15%.

The First Vice Premier emphasized that there are two main issues that the Belarusian power engineering is facing today, i.e. prices and cross subsidies.

For example, Smolensk offers electricity at cheaper prices. It will still require additional resources and funds to deliver it to Belarus, Vladimir Semashko added.