OREANDA-NEWS. May 24, 2010. Pursuant to assignment of the government heads of the Republic of Kazakhstan and Russian Federation, according to intergovernmental Agreement on measures to secure parallel operation of unified power systems of the Republic of Kazakhstan and Russian Federation dated 20 November 2009 the following agreements were signed:

agreement on parallel operation of power systems of the Republic of Kazakhstan and Russian Federation between KEGOC JSC and FGC OJSC, SO UES OJSC

agreement on electricity transmission services via electric networks of the Republic of Kazakhstan between KEGOC JSC and FGC OJSC

agreement on purchase and sale of electricity to compensate hourly deviations during electricity transmission across the border of Russian Federation and Republic of Kazakhstan, between KEGOC JSC and INTER RAO UES OJSC.

Also, at the end of 2009 KEGOC and FSK UES signed agreement On procedure for hourly metering of electricity transferred across the border of the Republic of Kazakhstan and Russian Federation and arranging daily exchange and verification of hourly metering information”.

- Traditional partnership relations of the two countries in electric power industry move to a brand new level. Under the policy of Kazakhstan and Russia governments towards establishment of Common Customs Space the agreements were signed to enable using the economic and technological advantages of the power systems parallel operation for the welfare of both countries consumers in the most efficient way, said Almassadam Satkaliyev, President of KEGOC.

Reciprocal services provided by the two countries UPS move to commercial basis. The Russian party will transmit/transit electricity via Kazakhstan networks on a paid basis. In its turn KEGOC as a Kazakhstan UPS System Operator will start paying services of standard frequency control. Up to now the service of power (frequency) control has been rendered in exchange for electricity transit. The contractual obligations yet increases the liability of meeting the dispatch control discipline and net power (electricity) flow across the border of the two countries.

The package of agreements on parallel operation of power systems has an infrastructural nature and creates a regulatory base for entering electric power markets both by the Kazakhstan and Russia participants. Parity level of relations was reached as a result of lengthy negotiation process and approval by the parties of the documents based on equality and mutual benefit principle. Unified Energy System of Russia has been in parallel operation with Kazakhstan UPS since 15 June 2000.