OREANDA-NEWS. August 06, 2008. Following the introduction of a price cap on the capacity market the supervisory board of non-commercial partnership ATS decided to even out prices on the energy market in August, if they rise more than 5% against the July average, the partnership said in a press release.

"If these August competitive prices jump more than 5% in each category compared to the average price in the same zone this July a mechanism for evening out prices will be introduced" – the press release said.

Gencos recognize the need for this temporary measure and propose forming a work group, whose conclusions will make it possible to avoid sharp price hikes later this summer.

"The faster prices grow, the more evident the risks associated with the continuing reform (in the utility sector) are" – CES CEO and head of non-commercial partnership Council of Electric Power Producers Mikhail Slobodin said. Yesterday, the council analyzed a spike in July prices. "The following factors driving up prices were identified: an equipment repair campaign, low water levels in rivers, much higher (against the same period a year ago) daily average temperature and other factors" – the press release said.

A similar mechanism has been used on numerous occasions since January 2008, the partnership pointed out.