MOSENERGO subsidiary Heating Networks implemented the 2000 heat energy sales plan by 101 per cent. Total heat energy sales were more than 9.5 billion rubles before VAT.

In 1999 the total amount of heat energy sales comprised 85 percent of the targeted level. The increase of cash returns for delivered heat that occurred in 2000 was caused by MOSENERGO's more aggressive policy tackling customer debt. For instance, by the start of the current heating season more than 70 percent of delinquent customers had paid off their debts to the Power Company.

However, the issue of non-payments remains outstanding. As of January 1, 2000, delinquent accounts for heating energy totaled more than 3.7 billion rubles. The major debtors were Mosgorteplo (which owes more then 2.3 billion rubles), Serp i Molot plant, Moskvich JSC and several other large industrial enterprises.

In addition, heating rates established by the Moscow City and region's energy commissions remain insufficient to cover the costs of production. Therefore, the energy system is not able to reconstruct the heating networks that are kept in operation beyond their service life. Currently the total length of these exhausted networks is more than 400 km and the figure continues to grow.

For this year MOSENERGO has targeted an increase of heat energy production that will overcome the respective figure for 2000 by more then 9 percent.