In September, AO MOSENERGO started to purchase power from ZIL's power station on more lucrative terms. The installed capacity of AMO ZIL's power station is 100 MWt. From now on AO MOSENERGO will pay for electricity based on the average rate for the first half of 2002, that will differ depending on the time of the day, in accordance with Moscow Energy Commission rates. The electricity supplied at night will be cheaper than at day time. Earlier, AO MOSENERGO purchased electricity from ZIL's power station at rates that equal the AO MOSENERGO production costs (not adjusted to the time of the day).

The agreement is also advantageous for AO MOSENERGO in that the parties will monthly negotiate electricity sales volumes based on the demand and prices. Earlier, the sales volumes were not subject to a change. As a result, sometimes AO MOSENERGO had to purchase more electricity than it needed. In October, AO MOSENERGO plans to purchase from ZIL about 6 mln kWt-h of electricity. In the future, ZIL's sales to AO MOSENERGO may grow by 80% due to seasonal factors.

This agreement will be valid until the end of this year. Afterwards it's likely to be extended for 2003. According to Kuzmin, deputy general director for sales and customer relations, who spoke at the press conference on AO MOSENERGO's results (October 2), this contract became one of the company's most significant recent achievements. In his view, this cooperation is very close to the market-based relations.

The purchase of electricity from other producers helps AO MOSENERGO to meet needs of its own power system at the time of the load peak. At night the company has to use services of the other companies to maintain the functionality of the power equipment.