Starting February 15, MOSENERGO will raise heating and power rates for customers in the Moscow region. The announcement came at a briefing held today in Moscow. MOSENERGO officials V.Nazin and A.Rayev, as well as V.Pronin, first deputy chairman of the Moscow Regional Energy Commission (REC), headed the meeting.

On average, power rates will be raised by 23 percent and heating rates by 24 percent. This means that industrial customers will pay 80 kopecks per kWh, while consumers using gas stoves - 50 kopecks per kWh, and electric stoves 35 kopecks per kWh. For customers in Moscow's rural areas the new rates are set at 31 kopecks per kWh. The company will also retain all discounts for designated customers.

Mr. Nazin said that an increase in fuel prices, aging equipment and the rise in rent for using Russian UES networks caused the rate increase.

However, these new rates, as well as the ones adopted by the Moscow city REC, could not begin to cover the costs for maintaining MOSENERGO production or implementing the capital construction program at the required scale or performing reconstruction and maintenance of the company's power facilities. Neither are the new rates enough to cover the cost of maintaining a positive fuel balance.

Therefore, further heating and power rate increases may come as early as summer.