Energogenie Ltd. stopped operating in Sverdlovsk Region, reports the spokesperson for SverdlovEnergoSbyt, the region’s major power supplier.

SverdlovEnergoSbyt received an official notification from V. Sokolov, the director of Energogenie’s local subsidiary; the letter said that their agreement regarding purchase and sale of electricity was no longer valid. Mr Sokolov also asked SverdlovEnergoSbyt to sign service contracts with the company’s consumers.

Energogenie Ltd. emerged in September 2005 and originally aimed to build its share of the regional electricity market to 30%. Yet it wasn’t able to get its tariffs approved of by the Regional Power Committee over one and a half years of operation; nor did the company manage to sign agreements with the infrastructure-providing enterprises or start supplying electricity to consumers legitimately. However, the lack of legal grounds for operation did not prevent the enterprise from signing a few supply agreements.