Unfavorable situation currently in place due to absence of payments from consumers to Mordovenergo, a branch of IDGC of Volga, PJSC (a member of Rosseti Group of Companies). As of October 1, 2016 the customers of the branch are in debt for electricity transmission services of more than 272 million rubles. Permanent breakers of repayment discipline are: Mordovskaya power grid, JSC (debt amount is 31 million rubles, including past due 20 million rubles), Elektroteploset, LLC (debt amount is 8 million rubles, including past due 4 million rubles), Energolin, LLC, (debt amount is 5 million rubles), Oboronenergosbyt, JSC (debt is 1.7 million rubles, including past due 1.4 million rubles). A large amount of debt was formed for the counterparty Mordovskaya Power Sales Company, PJSC. Guaranteeing supplier regularly disrupts a schedule of payment for the electric power transmission. The contractor monthly underpays the amount from 4 to 30 million rubles of principal debt since February 2016. At the moment the debt amount is 169 million rubles, including past due 31 million rubles. Mordovskaya Power Sales Company explains the growth of the debt because the lack of money receipts from end consumers: Energosbyt RM LLC, Gorvoda LLC (Ruzaevka city), Gorstok LLC (Ruzaevka city), Communalniye uslugi LLC (Tenguschevo settlement), Ruzvoda (Ruzayevskiy district) LLC, Chamzinskavodocanal (Municipal Enterprise of the Chamzinskiy Municipal District). However, among counterparties of the Mordovenergo branch there are companies that honour the contract conditions and do not violate the terms of payment, namely: Rusenergosbyt LLC, MagnitEnergo LLC, RegionEnergoContract LLC, Jubileynoye LLC, Kombis LLC, SC TF Watt, Life support systems LLC, FKP Saransk Mechanical Plant, RRSK LLC, Mordovdevelopment LLC. OOO VKM-Steel currently also complies with the terms of payment for the electric power transmission services. It is well known that the non-payment for services rendered is the basis for litigation, which resulted in sequestration of debtors’ accounts. The Mordovenergo, a branch of IDGC of Volga, PJSC, will be forced to apply the measures as provided for in the legislation for power supply limitation in the case of further non-payment. For the purpose of resolving the problem of non-payment the Mordovenergo is working closely with the leadership of the Republic of Mordovia on the organization of work of the Commission on the monitoring of financial condition, improve payment discipline, settlement of a debts for fuel and energy resources in the Republic of Mordovia. As a result of the Commission work the protocol resolutions are taken to jointly affect the debt problem solving. At that, power men remind that lack of payment from the debtors leads to disruption of the repair and investment programs, that may adversely affect the security of power supply and quality of electrical energy in the Republic of Mordovia. For reference:Non-payment for electrical energy transmission services may lead to the initiation of bankruptcy proceeding against the debtors. In addition, the Federal Law of November 3, 2015 No. 307-FZ prescribes strict penalties for late payment for electrical energy transmission services. Consumers who are late or do not fully pay for the electrical energy transmission services provided are required to pay the fine to a grid company in the amount of one one hundred thirties (1/130) of the refinancing rate of the Central Bank of the Russian Federation, acting on the day of actual payment, from delayed amount for each day of delay starting from the day following the day of the payment due date to the day of actual payment. Therefore, the regulations specify a penalty in an amount of 29% of the cost of the unpaid services in case of such delay. In accordance with the Federal law of November 3, 2015 No. 307-FZ, the punishment became more rigorous (pertaining to power supply limitation) for electric users, who violate their power consumption limits, fail to comply with requirements of the consumption self-limitation, or fail to provide the representatives of a greed organization or another authorized person with the possibility to take measures for power supply limitation. This will result the administrative fine amounting from 10,000 to 100,000 rubles or disqualification for period of two to three years for officials, and the fine amounting from 100,000 to 200,000 rubles for legal entities.