On November 1, AO MOSENERGO announced at a team general conference the results for January-September 2002. The conference was attended by AO MOSENERGO's heads of departments and divisions, representatives of the Moscow and regional governments. Igor Goryunov, first deputy general director of AO MOSENERGO and chief engineer of the company, delivered the report on AO MOSENERGO results in January-September 2002.

According to Goryunov, AO MOSENERGO has carried out necessary repairs at power stations, electric and heating grids. The company also created sufficient fuel stocks for the winter period. As of October 1, fuel reserves at power stations exceeded requirements set by RAO UES, Moscow and Moscow region governments for all types of fuel stocks. Coal stocks exceeded requirements by 35%, fuel oil stocks - by 2%.

AO MOSENERGO's heating and mechanical equipment has been fully prepared for winter operation. Since the start of the year, AO MOSENERGO repaired 14 power units, 24 turbine generators and 2 hydro turbines, 20 boilers and 23 power boilers. Another boiler will be repaired by mid-December.

The repair of electric equipment was carried out on time, without any delays. The company has fulfilled the nine-month plan for repairing generators, transformers and 110-500 kV switches. The company is ahead of the schedule repairing bellows, air and oil switches, air compressors, aerial and cable lines, as well as distribution and transformer substations.

In 2002, Heating Grids of AO MOSENERGO replaced more than 75 km of heating grids, which is 108% of the planned volume. By the beginning of the heating season, the company had eliminated all pipe damages (around 5 thousand) and carried out all hydraulic and temperature tests on all grid pipelines. During the repair campaign, the Heating Grids performed the repair of all heating pump stations and built two new pump stations.

On September 24, AO MOSENERGO turned on the centralized heating system.

During nine months of 2002, AO MOSENERGO has generated 49.3 bln kWt/h of electricity, which is 2% less compared to the same period of last year. This was caused by the warm winter and operational conditions.

In January-September of 2002, AO MOSENERGO customers consumed 4% more electricity than at the same period last year. To satisfy higher demand AO MOSENERGO had to buy electricity from other regions. In total, AO MOSENERGO bought at FOREM 2.5 bln kWt/h of electricity.

From the start of year, AO MOSENERGO produced 43.4 mln GCal of heat - 5.5% less as compared to 2001, due to the warmer winter.

Goryunov paid attention to the fact that in January-September there was not a single major breakdown in AO MOSAENERGO's system. However, the company registered around 6,000 minor incidents. In early October, one of power units at Kashira GRES-4 was damaged which led to the breakdown of a 300 MWt turbine and a turbine generator with oil cooling (no hydrogene was used). The incident was possibly caused by defects in the equipment. The power station's staff properly acted in the emergency, having prevented the destruction and failure of the rest of equipment, Goryunov stressed. According to Goryunov, AO MOSENERGO is going to restore the damaged power unit. By preliminary estimates, the operation will be restored by the winter of 2004-2005. The reconstruction will cost $130-150 mln. The rest of the power station equipment operates properly.

As for nine-month financial results, Goryunov pointed out that the introduction of new tariffs by Moscow and regional energy commissions resulted in lower profits. The tariffs which were introduced last May and August were not sufficient to ensure the company's profitability. The decreased revenues and lower heat consumption coincided with growing production and sale costs.

In January-September, the company supplied power worth 34 bln rubles which is 4.4% less than a target value set in AO MOSENERGO's business plan. Lower revenues were also caused by decreasing heat consumption due to the warmer winter and the increasing number of low-tariff customers.

In January-September sales amounted to 36 bln rubles, or 107% of shipped produce. In this period the company's loss amounted to 816 mln rubles.

AO MOSENERGO's receivables decreased by more than 30%, reaching 6 bln rubles. The company arranged the return of debts from a number of agricultural companies, the Ministry of Defense, Railways Ministry, municipal organizations and Mosgorteplo.

AO MOSENERGO's receivables at FOREM decreased by 33% reaching 714 mln rubles. The company's payables to fuel suppliers and repair companies increased in nine months to 3,490 mln rubles, or 46%.

AO MOSENERGO's greatest achievement this year was the payment of debts to foreign creditors, Goryunov said. AO MOSENERGO has fully paid external debts despite losses on core operations.