On April 1, the Inter-district Inspectorate of the Federal Tax Service for Moscow has registered 13 new companies that were spun off from AO MOSENERGO.

Based on AO MOSENERGO’s assets, the following companies have been set up: OAO Management Power Company, OAO High Voltage Grid Company, OAO Moscow Municipal Electric Grid Company, OAO Moscow Heating Grid Company, OAO Moscow Regional Electric Grid Company, OAO Mosenergosbyt, OAO Specilized Design and Construction Bureau for Repair and Reconstruction, OAO Mosteplosyetenergoremont, OAO Mosenergosyetstroy, OAO GRES-4 (Kashirskaya), OAO GRES-5 (Shaturskaya), OAO GRES-24 (Ryazanskaya) and OAO Zagorskaya GAES.

The generating company that consists of 17 power stations (total capacity – around 10,000 MWt) will retain the Mosenergo brand. Company will keep 47% of assets. Kashirskaya, Shaturskaya and Ryazanskaya GRES’s will be part of Wholesale Generating Companies No. 1, No. 4 and No.6, respectively. Zagorskaya GAES will be included into OAO HydroOGK.

After the state registration of new joint-stock companies their shares are considered to have been placed among AO MOSENERGO’s shareholders that are listed in the company’s registry as of that date.

In April boards of directors of newly registered joint-stock companies should approve decisions on the issuance and reports on the results of share issuance, as well as submit these documents to the Federal Service for Financial Markets (FSFM) for state registration. The reports are expected to be registered with FSFM by June 2005. The Russian legislation bans the circulation of securities prior to the registration of the report on the results of the share issuance.

«We want to create market competition between power producers,» said Dmitry Vasiliev, first deputy general director of AO MOSENERGO. It will make it possible to establish a different system of electricity generation, sales and tariff calculation. All producers will compete for consumers and offer them more interesting and attractive terms, he said.