Moscow. 18 January 2006. RAO "UES of Russia" understands the technical problems experienced by OAO "Gazprom", which caused reduction in gas supplies to RAO UES power plants. The reduction in gas supplies to power plants and other industrial consumers are due to the technological limitations of gas transportation in abnormally low temperatures and increased fuel use by the residential utilities. The possibility of such reductions is provided for in the gas supply contracts between RAO UES entities and OAO "Gazprom".

Meanwhile, in order ensure uninterrupted generation of power, RAO UES enterprises, including the power plants located in the Moscow Region, are switching their generation facilities to the reserve fuels, primarily fuel oil. Currently, the power plants of RAO "UES of Russia" additionally consume over 55,00 tonnes of fuel oil a day. The extra expenses incurred in connection with the switch to the reserve fuel total at least RUB250 million daily.

Although that the gas supply reduction by Gazprom subsidiaries to RAO UES power plants may reach 50% of the plan amounts, the stocks of reserve fuel at the power plants are sufficient to switch to burning an alternative fuel. Owing to the prompt and efficient actions by the power plants' personnel, the transition was smooth and failure-free.

At the same time, RAO "UES of Russia" is confident that, in the light of the importance of fuel supply to power plants and ensuring reliable power supply in extreme weather conditions, OAO "Gazprom" will do its best to fully restore gas supplies to the power plants within the next few days.