Moscow, 3 December 2003. Today some mass media announced, quoting the Press Secretary of Georgia's Acting President, that the leadership of the Republic had reached an agreement with RAO "UES of Russia" to keep the current electricity tariffs unchanged in Tbilisi. In this connection, RAO "UES of Russia" reminded that Telasi Co.* proposed the Energy Regulation Commission of Georgia postpone the introduction of the new tariff system, which envisages a 10% growth in the electricity tariffs, from 1 December this year until 1 April 2004, and the Georgian authorities accepted the proposal.

At the same, RAO "UES of Russia" said that the declarations of Georgia's officials that the electricity tariffs will remain unchanged after 1 April 2004 are premature, to say the least, and are not based on any agreements or arrangements among the Georgian authorities, RAO "UES of Russia", and AO "Telasi".

Telasi specialists are now working on the model of electricity tariff policy. Upon completion of the work, they will submit their proposals to the National Energy Regulation Commission of Georgia.

RAO "UES of Russia" emphasized that the chief task for Telasi currently is to ensure reliable and uninterrupted power supply to consumers in Tbilisi during the 2003/2004 autumn-winter peak load, provided that consumers pay in full for the electricity supplied to them.

* AO "Telasi" is an electricity distribution company owning low- and medium-voltage networks in Tbilisi and the surrounding area populated by 1.6 million people. One of RAO "UES of Russia" entities holds a 75% stake in the Company. RAO "UES of Russia" started running Telasi effective 1 September 2003.