A team from AO MOSENERGO TEZ-27 power station met with deputies from the State Duma faction of the Unified Russia Party. The deputies, who are preparing for end-of-the-year elections to the State Duma, initiated the event. According to Unified Russia's deputies, they regularly meet teams at various plants of different industrial sectors.

The deputies wanted to improve their knowledge of topical problems in the Russian power sector and receive inquiries from workers regarding possible legislative initiatives.

Unified Russia pays special attention to the power industry, stressed Vladimir Pekhtin, leader of the Unified Russia faction in the State Duma. The faction took an active part in developing and adopting power-restructuring bills. According to Pekhtin, the adopted reform bills will positively influence the domestic power sector.

The participants in the meeting focused on the issue of electricity tariffs. AO MOSENERGO representatives have voiced their concern about electricity and heat tariffs set by the Moscow Regional Energy Commission (REC). Despite gas tariffs being raised 20% early in 2003 and the inflation rate in the power sector averaging 18%, REC has increased AO MOSENERGO tariffs only by 14%. Such low tariffs had a negative impact on AO MOSENERGO's budget. Furthermore, low tariffs decreased the output profitability. Currently, profitability of heat production is minus 4%. Deputies from Unified Russia agreed with utility workers concerns. They promised to apply maximum of efforts to increase REC's efficiency and increase their responsibilities.

AO MOSENERGO representatives offered to adjust tariff-setting procedures for heat and electricity. In accordance with existing practices, fuel and transportation tariffs are set from the start of the year, while heat and electricity tariffs are set at the end of the first quarter. As a result, power companies incur losses by purchasing fuel at higher prices and selling electricity at lower prices for several months. This negatively affects the financial condition of the company and the reliability of the power supply. Deputies accepted this as a rational initiative and promised to consider it in their legislative activities.

The participants touched upon a whole range of topical problems faced by the Russian utilities sector. Deputies agreed with most issues raised by TEZ-22 representatives and showed readiness to take joint action. At the end of the meeting, TEZ-22 workers instructed deputies and their faction leader Vladimir Pekhtin to develop measures, which would prevent artificial lowering of heat and electricity tariffs. AO MOSENERGO representatives also called for creating an investor-friendly environment in the utilities sector. They also expressed their wish to receive higher remuneration, which would be commensurate with the industry's input in the national economy.