At its meeting on October 9, 2003, AO MOSENERGO board of directors approved the Interaction Agreements on Moscow and Moscow Region's Power Complex Restructuring.

As stated earlier, the agreements set key principles for AO MOSENERGO restructuring and outlined main objectives for reforming the Moscow and Moscow Region power complex, which is to ensure the reliable and sustainable, uninterrupted and affordable power supply for consumers.

The agreements say that promoting competition in the retail power market encourages companies to cut costs, upgrade power equipment and as for consumers – to choose alternative power suppliers. These agreements also provide for gradual elimination of cross-subsidies between various groups of customers of electricity and heat in Moscow and the region. The agreements envisage mechanisms for improving efficiency of the power system and promoting the growth of economy in the region.

The agreements will be reviewed at the next meeting of RAO UES board of directors and take force as soon as they are approved.