Vitaly Kuzmin, deputy general director for customer relations, delivered the results for AO MOSENERGO.

According to Kuzmin, in 2002, AO MOSENERGO faced growing demand in the Moscow region. During January–May, the company supplied 24 billion kWt-hours of electricity, or 4.7% more than in the first five months of 2001. These rates suggest that this or at least next year the electricity consumption may reach the peak of the early nineties, Kuzmin said.

During the first five months of 2002, AO MOSENERGO supplied 33.3 million Gcal of heat, or 6% less than during the same period in 2001. The decrease in the demand for heat was caused by warmer weather earlier this year.

During January–May, AO MOSENERGO supplied power for a total of 24 billion rubles. Customers paid for 107% of shipped energy. On the year-to-date basis AO MOSENERGO’s receivables decreased by 1.7 billion rubles. As of the beginning of June, AO MOSENERGO’s receivables amounted to 8.4 billion rubles. During the first five months of 2002 federal entities (financed from the federal budget) paid for 101.5% of supplied heat and electricity. Thus, these organizations have fully paid for current consumption and partially covered outstanding liabilities. Kuzmin called it “a significant achivement,” as these customers have started to abide by the terms of the power supply agreement. He credited government agencies that distribute funds among federal entities with helping AO MOSENERGO to achieve this result.

However, a number of government ministries and agencies have failed to fully redeem their debts, though the debt is decreasing, as compared to last year. Currently, the Ministry of Defense owes 512 million rubles, the Ministry of Interior—20 million rubles, the Ministry of Education—19 million rubles, and the Ministry of Emergency Situations—16 million rubles. According to Kuzmin, the biggest debt was accumulated this year by the fire services of Moscow and Moscow region as a result of re-subordinating them from the Ministry of Defense to the Ministry of Emergency Situations. “We actively cooperate with the fire services of Moscow and Moscow region to negotiate the payment of debts and try to avoid the power cut-off at these entities,” Kuzmin said. “It is summer now, the time of fires. So far, we have shown tolerance in supplying power they don’t pay for.”

In 2002, other customers paid for supplied energy in accordance with the agreements. Moscow federal entities paid for the energy on time. The period of debt accumulation does not exceed 10 days—the term specified in the power supply agreement. As of the beginning of the June, the debt of Moscow federal entities to AO MOSENERGO was estimated at 23 million rubles, which is 340,000 rubles less than during the same period last year.

AO MOSENERGO concluded agreements to restructure debts practically with all Moscow municipal entities. The key settlements this year will be carried out under these agreements. According to Vitaly Kuzmin, the schedule for redeeming this debt and payments from this category of client are generally fulfilled.

During the press conference it was stated that in 2002, AO MOSENERGO purchased in the wholesale market 1,341 million kWt hours of electricity for 330 million rubles. At the same time, the 217 million debt relating to wholesale purchases was redeemed. This year, AO MOSENERGO did not sell its own power in the wholesale market.