The debt of the Ministry of Defense to AO MOSENERGO for consumed heat and electricity exceeded 436 mln rubles. The Company’s management has sent a letter to Russian Prime Minister Mikhail Fradkov asking him to interfere in the situation and help resolve the non-payment problem.

During the ten months of 2004, AO MOSENERGO supplied to entities that get funding from the federal budget electricity and heat worth 4.7 bn rubles. As of November 1, federal ministries and entities have paid around 4.3 bn rubles (91.3%). The biggest debtors include the Ministry of Education (34.1 mln rubles), the Ministry of Justice (23.5 mln rubles) and the Ministry of Internal Affairs (14.5 mln rubles). However, the undisputed leader among them is the Ministry of Defense that owes to AO MOSENERGO 436.5 mln rubles.

Federal ministries and entities have not fulfilled its responsibilities regarding timely and full payment and violated the relevant decisions of the Russian Government. AO MOSENERGO has repeatedly raised this issue with organizations that are financed from the budget, as well as with the Ministry of Finance, however, the problem has not yet been resolved.

AO MOSENERGO cannot give away its power as underpayment makes it difficult for the company to carry out a number of important tasks including the purchase of fuel, as well as the upgrade and maintenance of equipment. As a result the reliability of the power supply for all customers including federal consumers decreases.