OREANDA-NEWS. March 28, 2011. Belarus plans to abolish cross-subsidies for gas prices and energy tariffs on a step-by-step baisis. It is envisaged in the State program meant to develop the Belarusian power engineering industry in 2011-2015, which was considered at a session of the Presidium of the Council of Ministers of the Republic of Belarus.

Energy Minister Alexander Ozerets told reporters that the program lays down provisions for the gradual abolition of cross-subsidies for gas prices and energy tariffs with a view to the social security issues. The abolition will be carried out to reduce energy costs for the consumers of the real sector of economy.

“This practice should be eliminated, as it affects both gas prices and energy production. We abolish cross-subsidies to ease the financial pressure on the real economy. Of course, the utilities prices will step up a bit, but we bear in mind that the average salary is planned at USD1,000 by 2015. We will be guided by this objective and the people will not be affected, Alexander Ozerets said.

The planned changes in the energy system will increase the production efficiency, create a competitive electric power market, which will maintain stable energy tariffs to secure the competitiveness of Belarusian goods, increase the investment attractiveness of the industry, provide economy sectors with electric and heat energy, and guarantee sustainable operation of the power engineering industry under state regulation.

The program is also set to streamline the tariff policy, which takes into account manufacturers and consumers’ interests and creates incentives for uppermost energy saving and more efficient manufacturing capacities.

The document specifies certain operations as part of the nuclear power plant construction.

Earthwork operations at the site of the future Belarusian nuclear power plant will begin in September, Alexander Ozerets told media.

“As far as the nuclear power plant construction is concerned, many matters that have been suspended are being successfully implemented. The relevant intergovernmental agreement has been signed. Earthwork operations are supposed to start in September. Work relating to the signing of the credit agreement and the general contract will continue,” said Alexander Ozerets.

At the same time the designing of the station will go on in order to prepare design and budget documentation for the relevant construction and installation works and to order equipment, said the official.