Dec. 26 (Bloomberg) -- Russia plans to delay raising household electricity prices until at least the second quarter as the state seeks to mitigate the effect of increases amid the global financial turmoil.

Officials are “developing a consolidated position that tariffs for the population won’t be raised until at least April 1,” Energy Minister Sergei Shmatko told the official Rossiyskaya Gazeta newspaper.

In March, Federal Tariff Service head Sergei Novikov said regulated prices for electricity may rise 20 to 23 percent in 2009. Electricity demand probably grew 2 percent in 2008 compared with the previous year, Shmatko said.

Russia plans to stop capping electricity prices for business from 2011 as the state sells interests in power generating companies and spends the raised cash on improving infrastructure. Electricity prices are being freed gradually before 2011, with about a fifth of all power currently sold on the spot market.

To contact the reporter on this story: Greg Walters in Moscow gwalters1@bloomberg.net

Last Updated: December 26, 2008 05:43 EST