The press-conference was held at the head office of AO MOSENERGO. It was attended by Arkady Yevstafyev, AO MOSENERGO's general director, Dmitry Vasilyev, first deputy general director for corporate policy and asset management, Vladislav Nazin, deputy general director for economic issues, Vitaly Kuzmin, deputy general director for marketing and consumer relations, and Dmitry Barshak, deputy general chief engineer for heating equipment.   

During the press-conference, AO MOSENERGO's managers spoke on the company's 2002 results and perspectives. In 2002, AO MOSENERGO is expected to generate 71.4 bln kWt-hour. The conmpany's consumers received 56.3 bln kWt-h of electricity. In 2002, the power consumption in Moscow and Moscow region grew against 2001, by 4.6% and 5.6%, correspondingly. The increase occurred due to higher power consumption by industrial consumers and railways.

This year, AO MOSENERGO is expected to produce 65.4 mln Gcal of heat – 2.7% less than last year. At the same time, wholesale consumers-resellers, construction and commercial organizations started to consume more heat.

In 2002, AO MOSENERGO was the only Russian power utility to have increased its generation capacity – a 22 MWt turbine at Stupino TEZ-17 was replaced by a 32 MWt turbine. The company launched two new 500 t/hour boilers at TEZ-11 and TEZ-20. In the Moscow region the company laid 740 km of 0.4, 6-10 and 35 kV aerial lines. AO MOSENERGO has also built more than 8 km of 1-10 and 110kV aerial lines. The company also constructed more than 13 new pipelines and replaced 80 km of old pipelines. In November, AO MOSENERGO has completed repairs of main assets and received a "readiness certificate" from RAO UES as a company that has prepared for autumn-winter season of 2002-2003.

This year there was one emergency at AO MOSENERGO – a fire at GRES-4. The number of technical violations has decreased by more than 20% as compared to 2001.

In 2002, fuel supplies to AO MOSENERGO were carried out in accordance with the company's needs. Mosregiongas has supplied to AO MOSENERGO 212 mln m³, Tsentrrusgas – 49 mln m³, Ryazanregiongas – 48 mln m³. As of early December, the actual fuel reserves at AO MOSENERGO's powerstations exceeded the minimal requirements set by RAO UES.

According to Arkady Yevstafyev, in 2002, AO MOSENERGO has signed a direct supply agreement with Gazprom. Until 2007, Gazprom will deliver to AO MOSENERGO 21.8 bln m³ of gas at prices to be set by the Federal Energy Commission. The signing of this agreement will help AO MOSENERGO to efficiently plan its mid-term operations, Yevstafyev said.

In 2002, AO MOSENERGO carried out early coupon payments on Eurobonds which were issued in 1997. In early October, the company made the last payment amounting to $4,805 mln. Throughout the whole period AO MOSENERGO has strictly performed its duties regarding the debt servicing. The principal amount paid equaled $109,97 mln. The funds which were attracted as a result of the Eurobond issuance were used to finance the company's investment program and increase the working capital. According to Vladislav Nazin, AO MOSENERGO obtained the funds to repay Eurobonds by collecting large receivables and cost cutting. Credit redemption which took place this year had a positive effect on the company's credit rating, Yevstafyev stressed.

In 2002, AO MOSENERGO's revenues are expected to amount around 53 bln rubles which is 22% higher than in 2001. Net profit is forecast at 0.3 bln which is seven times lower than in 2001, due to slow tariff increase by the Moscow regional energy commission and inflation-driven production costs.

In 2003, AO MOSENERGO plans to invest 14 bln rubles including amortization costs (5.9 bln rubles).

In the end Arkady Yevstafyev pointed out that AO MOSENERGO and the Moscow Regional Commission should focus on the development of generation capacities in order to meet the growing power consumption in the Moscow region.