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Unified Energy System

February 10, 2005

Procurement by RAO UES entities tops RUB300 bn in 2004

Moscow, 10 February 2005. The value of procurement by enterprises of RAO "UES of Russia" in 2004 was in excess of RUB300 billion. The savings achieved as a result of the use of competitive procurement totalled RUB3.3 billion, a nearly threefold increase on 2003.

The main procurement method used by the energy companies is competitive tendering, with special emphasis placed on public tenders. In 2004, RAO UES enterprises held nearly 9,000 tenders, which is two times the 2003 figure. The share of competitive procurement grew to 45.5%.

One of the principal areas for the development of the competitive procurement system at RAO "UES of Russia" is the expansion of e-business systems. In October 2002, RAO "UES of Russia" initiated the development and launch of an e-trading system, Goods, Services and Technology Markets for Electricity Industry - B2B-Energo, which now has over 2,600 participants from Russia and 22 countries of the world.

Trading in the B2B-Enego helps RAO UES entities reduce their procurement costs by at least one third, and cut the price of the goods, works and services procured by 9%. Price of the products procured through e-auctions is reduced by an average of 17% and, in some cases, by more than 40%.

For example, in 2004 OAO Neporozhny Sayano-Shushenskaya HPP procured goods worth over RUB300 million through e-trading systems, achieving savings of more than RUB30 million. Thanks to the use of B2B-Energo, OAO Penzaenergo was able to save RUB70 million in 2004.

The use of e-procurement is one of the factors, which make it possible to curb the heat and electricity price rise in different regions of Russia.

In view of the successful experience of using e-business mechanisms in procurement activities, the Management Board of RAO "UES of Russia" decided that at least 50 percent of goods, works and services procured by RAO UES entities should be purchased through e-trading systems on a competitive basis.


The system for competitive procurement of goods, works, and services has existed at RAO "UES of Russia" Holding Company since 1999. The system is intended to improve the manageability of cash flows, enhance transparency of spending, and reduce energy companies' expenses.

The Information and Trading System "Market for Goods, Services and Technologies for the Electricity Industry - ?2?-Energo" (website: offers expanded functionality for the information support, marketing and organization of various e-procurement processes in an online mode.

According to experts, the estimated savings from the use of e-business systems by RAO UES enterprises may total more than RUB11 billion in the next three years.




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