The ten years of classical reforms through which the electric utilities have passed came to an end on 1 July 2008. The ‘Era of Chubais’ was characterised by severe conflicts between shareholders, hard decisions and the rewarding growth of RAO UES’s share price. Now, with more than 30 different companies, with Mcaps of over USD 210bn at the May 2008 market peak (comprising 15% of Russia’s Mcap) and an average free float of 20%, the sector is gearing up for further growth and preparing to reveal the undiscovered depths of its complexities, which we believe hide the keys to as yet unexplored value.
Classical economic theory teaches us that any shift from one market order to another shakes the system of out of the old equilibrium into a new one. And where will it be, as the electricity market moves from regulation and a lack of investment to de-regulation and the investment commitments of new private international and domestic players? We have yet to discover … May the Power be with you!
Companies under coverage
Mosenergo (TGK-3), RusHydro, TGK-1, OGK 1, OGK 2, OGK 3, OGK 4, OGK 5, OGK 6, FSK, MRSK Holding, MOESK, Lenenergo, MRSK Center and Volga, MRSK North_West, MRSK Siberia, MRSK Center, MRSK South, MRSK North Caucasus, MRSK Volga, MRSK Urals, Inter RAO, Bashkirenergo