The press conference was held in the general director's office. Arkady Yevstafyev, general director, Vladislav Nazin, deputy general director for economy, and Vitaly Kuzmin, deputy general director for sales and consumer relations all attended the event.

The general director spoke about the company's results in the first half of 2002. He stressed that during that period the company ensured reliable supply of heat and electric energy to consumers in the Moscow region. In comparison with the same period last year, AO MOSENERGO's peak load grew by 3.8%, amounting to 13,254 MWt. Operational capacity of power stations including block stations amounted to 12,569 MWt, which exceeded the planned capacity of 667 MWt.

In the first half of 2002, consumption of energy among its own consumers reached 28 billion kWt-h, which exceeded the planned consumption by 1.4% and last year's figures by 4.4%. In comparison with last year, industrial customers consumed more by 485 kWt-h or 6.3%. Non-industrial consumption has grown considerably—by 8%. The growth in the household segment was approximately 7%. At the same time, resellers consumed less. According to Yevstafyev, AO MOSENERGO is gradually switching to direct contracts with consumers.

In the first half of 2002, power stations released 37,732 GCal of heat, which is less by 10% than the planned level. This is explained by warmer weather. The company also considerably cut electricity losses. In the first half of 2002, heat losses amounted to 12.7% against 20% in 2001.

The head of AO MOSENERGO has said that the company is now ready for the upcoming heating season. AO MOSENERGO has extended the four-party agreement on gas supplies with Mezhregiongas, Gasprom and the Moscow Government. As a result, Moscow's power stations are promptly and fully supplied with fuel. The directives of the Moscow Government and RAO UES regarding the creation of reserves for all other types of fuel are fulfilled 100%.

In addition, Yevstafyev said that AO MOSENERGO is fully satisfied with existing tariff rates, which were set by Moscow Regional Energy Commission in August 2002. In accordance with the business plan, the company's profit is expected to amount to 709 million rubles. To achieve this result, AO MOSENERGO «intends to closely follow pre-set expenditure plans, cost minimization programs and carry out all necessary cost-saving measures,» the general director said.