In 1Q04, major municipal power resellers GUP Mosgorteplo and GUP Teploremontnaladka have fully met their obligations with respect to AO MOSENERGO by paying for heat more than 6.3 bn rubles.

Currently, no public care institution that receives funding from the Moscow budget owes funds to AO MOSENERGO. In 1Q04, these entities paid more than 280 mn rubles for electricity and around 190 mn for heat.

In addition, the city has fully compensated electricity and heat rate discounts for some categories of the population. In 1Q04, AO MOSENERGO received relief compensation from Moscow budget worth more than 365 mn rubles.

The meeting of obligations by Moscow Government with respect to AO MOSENERGO helps to improve the payment discipline in Moscow and sets a positive example for all of AO MOSENERGO's customers. The receipt of payments on time and in full makes it possible for AO MOSENERGO to increase reliability of power supply, especially, during the heating season.

At the same time, a serious problem for the company is posed by entities that are funded from the federal and regional budgets. The violation of payment schedule poses a major obstacle for sustainable development of the Moscow region power industry.