Tariffs in Moscow region increased, effective April 15, 2002, while Moscow tariffs will increase starting May 1. The decisions to increase tariffs were adopted by Moscow and Moscow Region Energy Commissions (RECs) on April 5 and 11, respectively.

As compared to the previous electricity tariff, the new rate represents a 29% hike. Industrial consumers under the 750kV grade will now pay 95 kopecks for 1 kWt·h, while those above the 750kV grade (large industrial consumers) will pay 58 kopecks per 1 kWt·h. Households using gas burners will pay 70 kopecks per 1 kWt·h, while those using electric ovens—50 kopecks per 1 kWt·h. The rural population will pay 50 kopecks per 1 kWt·h. The heat tariff for industrial consumers reached 270 rubles/GCal, and for the population—300 rubles/Gcal.

In Moscow the average electricity tariffs went up 15% for industrial consumers and 20% for the population. The electricity tariff for industrial 750kV-consumers will be 86 kopecks per 1 kWt·h and for 750kV-consumers (large industrial enterprises) the average electricity tariff will amount to 60 kopecks per 1 kWt·h. Households using gas burners will pay 76 kopecks per 1 kWt·h. Households with electric ovens will pay 53 kopecks per 1 kWt·h. The heat tariff for industrial consumers now equals 238 rubles/GCal, and for urban population 110 rubles/Gcal.

AO MOSENERGO’s electricity and heat tariffs grew due to the need to ensure justified compensation for costs incurred by the company in the process of generation, transportation and distribution of electric power. AO MOSENERGO’s costs are based on 2002 gas price increases, increase in RAO UES payments, adjustment of wages, as well as on higher capital construction costs and expenditures for repairs of electricity and heat generation facilities, heat and electric grids.

Earlier approval of new tariffs for the Moscow region will help to speed up the start of repairs at energy facilities and the preparation for the next heating season (2002–2003). In accordance with the plan that had been approved by AO MOSENERGO, it is planned to allocate about 9 billion rubles for the repair of the equipment in 2002. A considerable part of this amount was expected to be raised by increasing the level of tariffs—the main source of funds for the capital construction of the company’s equipment.