The press conference was held at AO MOSENERGO's head office. According to Vitaly Kuzmin, deputy general director for sales and customer relations, in January-August 2002, the electricity consumption by the company's own customers increased by 4.6% against the same period last year. The heat consumption during eight months of 2002 decreased by 6.7%

In January-August, electricity losses in AO MOSENERGO's grids decreased by more than 7%, as compared to the same period of 2001. The total electricity losses were at 12% of 42,874 mln kWt-h.

The cost of electricity and heat that was supplied by AO MOSENERGO in January-August amounted to 34,829 mln rubles which is 12.7% higher than in 2001. The company's own customers paid for it 37,269 mln rubles, or 107% of the total power cost.

In 2002, AO MOSENERGO did not sell electricity at FOREM. At the same time, the company bought at FOREM 2,325 mln kWt-h worth 614 mln rubles.

In eight months of 2002, AO MOSENERGO's receivables that are owed by the company's own customers decreased by 28% (including the debt of federal ministries and agencies, as well as Moscow budgetary institutions). As of the beginning of September, the company's receivables amounted to 7,280 mln rubles. This has been the lowest figure since January 2001.

In January-August, the electricity and heating debt of federal entities decreased by 109 mln rubles and reached 559 mln rubles. The biggest part of it is owed by the Ministry of Defence (in total – 465 mln rubles). The organizations that are funded from the Moscow budget have to pay 14 mln rubles. In general, they managed to timely pay the debt thanks to the coordinated effort of AO MOSENERGO and Moscow government. Social welfare organizations from the Moscow region has paid in full for the current energy consumption from the beginning of 2002. The paid 106% for the consumed power, while their debts still stand at 20 mln rubles, having decreased by 3 mln rubles since January.

According to Kuzmin, one of the company's most significant recent achievements is the power supply agreement signed between AO MOSENERGO and ZIL. AO MOSENERGO will purchase electricity from ZIL's power station on new terms. Rates will depend on the time of the day and will be significantly cheaper at night. This principle is very close to the market-based relations.

Kuzmin also said that as a result of the agreement reached in August, AO MOSENERGO managed to reach agreement with FGUP NII Geodsia. Under the agreement, the parties decided to restructure Geodesia's debt which amounts to 40,256,000 rubles. For last two months Geodesia has been timely and fully paying for current power consumption and partially redeeming old debts.

Replying to the questions regarding the new settlement system in Moscow, deputy general director said that the new bills have been sent to customers in all Moscow districts. The new systems serves to improve customer service. Kuzmin refuted the allegations that the new system makes the population provide credits to the company. As usual, consumers have to pay for consumed power before the 10th day of the next month. In the coming months AO MOSENERGO will offer its customers a new service – an opportunity to pay for electricity in big Moscow supermarkets.

According to Kuzmin, there is nothing that prevents AO MOSENERGO from cooperating with Mosgorenergo which was set up by the Moscow government, if certain conditions are met. Moscow Energy Commission should set for AO MOSENERGO and Mosgorenergo justifiable and comparable tariffs for power generation and transportation. This is a condition for normal economic activity, Kuzmin said. We look forward to conducting serious negotiations with Mosgorenergo and hope that relations with this organizations will be constructive. He also expressed a concern that Moscow Energy Commission may be inclined to lobby the interests of its own utility – Mosgorenergo.