Russian power giant IES has announced it is to attempt to bring its full power production and delivery in-house.
The Russian provider, which has been accused of creating a regional monopoly, has revealed details of its plans to bring the entire supply chain, from generation to delivery, under its wing.
However the move has been accompanied by the proposed sale of its non-core assets aimed at raising $1 billion for the venture.
For many businesses, outsourcing a supply chain is more cost effective.
IES has so many assets after buying up left-over assets from Russia's old energy monopoly, Unified Energy System, which went in to liquidation on 1 July 2008.
Only Gazprom, Russia's controversy-ridden international gas exporter bought more than IES, such is the might of the company.
IES' reach includes a massive amount of European Russia and the Ural mountains, which account for a large part of the Russian population.
Despite hopes of saving money through an in-house supply chain however, the company is unlikely to make any profit from the streamlining as the Russian government has fixed the sale price of energy well below that which allows a profit.
Energy price freedom will be seen in 2011 however, which will mean a price hike for most consumers.
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