One of the key and pressing challenge the Russian electric power industry faces today in its development and performance is the problem of cross subsidization. This problem, if not solved, will hinder further adequate development of market relations, effective performance of market players and of the national economy in general. This article is aimed at the comprehensive overview of the cross subsidization types currently existing in the industry (where subsidization between citizens and other consumers remains the basic one), system analysis of its causes and opportunities for the solution of this problem including potential risk assessment as regards the price mechanism reviewed.

Key words: cross subsidization, electric power industry, electricity prices and tariffs, consumer groups.