Moscow, 7 February 2006. The Moscow Energy System is operating in an extremely difficult situation, with severe frosts leading to an ongoing increase in power consumption. In this connection, the Emergency Management Centre took a decision to introduce an energy conservation regime** for industrial consumers tomorrow, 8 February, from 8 am to 1 pm (power cuts of up to 340 MW) and from 5 pm to 9 pm (power cuts of at least 526 MW).

All power plants in the Moscow region are running their equipment at full capacity, operating at peak load to generate additional electricity. Some power plants are overloaded, with the overload at the CHPPs of OAO "Mosenergo" exceeding 368 MW.

In the evening of 7 February, the energy consumption is expected to peak at 16,100 MW. Accordingly, the energy conservation regime will be imposed on some industrial consumers in Moscow and the surrounding region from 5 pm to 9 pm. The total restrictions of power supply to enterprises will amount to 526 MW.

The supply reduction schedules have been agreed with the Governments of Moscow and the Moscow Region, and the members of the Emergency Management Center to coordinate of actions in the Moscow energy system during the cold period. The Governments of Moscow and the Moscow region also took a decision to reduce power supply to clothing markets and construction companies carrying out energy intensive works. The power supply reductions will not affect social facilities, buildings of the government and state authorities, medical institutions, military units, facilities of the Ministry of the Interior, the Federal Security Service, nuclear centers, underground railways ("metro"), etc. The temperature of water in the district heating networks corresponded to the weather conditions.

As was noted at the Centre meeting, during the evening peak load of 6 February, reductions of electricity supply amounted to 304 MW between 5 pm and 8:30 pm, with the load reaching 15,970 MW. In the morning of 7 February, the deliveries of power to industrial consumers were not reduced, but a new load record was registered in the Moscow Region's energy system, exceeding by 65 MW the highest ever peak load recorded in the region's energy system on 20 January 2006.

The situation in the Moscow energy system is further complicated by the technical issues of transporting gas in low temperatures, which means to RAO UES power plants will continue to experience cuts in gas supply. In this connection, power plants will increasingly use alternative fuels, mainly fuel oil. Over the past 24 hours, the power plants of OAO "Mosenergo" consumed an additional 18,000 tonnes of fuel oil.

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* The meetings of the Emergency Management Center are attended by senior executives of the Moscow Generation Company, Moscow City Grid Company and Moscow Region Grid Company, the heads of the Moscow Region's energy dispatching units, as well as key officers of the RAO UESR administrative staff, Head of the Moscow Municipal Services Directorate and First Deputy Mayor of Moscow Pyotr Aksyonov, Minister of Utilities, Fuel and Energy of the Moscow Region Government Viktor Beshkarev, Head of the Main Directorate of Russia's Ministry of Emergencies for the city of Moscow Aleksandr Yeliseyev, and representatives of the Moscow Military District HQ.

** The deliveries of power to industrial consumers will be reduced with advance notice given to each such consumer. These measures were taken pursuant to Resolution of the Russian Government No. 664 of 1999 and are designed to provide a reliability margin in the energy system required to prevent any possible local problems from cascading into a massive blackout.

The energy companies submitted for approval by the Fuel and Energy Department of the Moscow City and Moscow Region a list of consumers to which electricity supply would be reduced during a period of peak load in the energy system caused by prolonged low temperatures. Such consumers primarily include auxiliary facilities of industrial enterprises.