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Unified Energy System

November 19, 2004

All companies of RAO "UES of Russia" receive winter readiness certificates

Moscow. 19 November 2004. All companies of RAO "UES of Russia" Holding Company received their winter readiness certificates.

Pursuant to the order of the Chairman of the Management Board of RAO "UES of Russia" Anatoly Chubais, 903 companies of RAO "UES of Russia" Holding Company (including OAO "UES SO-CDA" and OAO "UES FGC") are to undergo inspection and receive winter preparedness certificates. Special commissions were organized to check the energy companies' preparedness to work during the 2004/2005 autumn-winter period. These commissions included specialists of the energy companies under inspection, inspectors of the regional energy control companies ("Energotekhnadzor"), representatives of OAO RAO "UES of Russia", OAO "UES SO-CDA", and OAO "UES FGC" or their branches. Moreover, the commissions included representatives of the Federal Service for Environmental, Technological, and Nuclear Oversight of Russia and the Ministry of Emergencies of Russia.

The key condition for obtaining a winter preparedness certificate is availability of the standard inventory of fuels and absence of restrictions on the working capacity for power plants and electricity transmission restrictions during peak load periods. At the same time, there are some additional conditions for obtaining a winter readiness certificate. Some branches of regional energos failed to meet some of these additional conditions, e.g. they failed to timely complete the repairs of equipment that do not affect the target available capacity of power plants during the autumn-winter period. These organizations received their winter readiness certificates after an individual decision. The energy companies promised to eliminate the shortcomings as soon as practicable and provided guarantee letters. This applies to OAO "Buryatenergo", OAO "Taymyrenergo", OAO "Krasnoyarskaya TPP-2", Branaulskaya CHPP-2, OAO "Altayenergo", OAO "Kubanenergo", OAO "Ingushenergo", and OAO "Karachaevo-Cherkesskenergo".

The 2004/2005 winter preparedness check at the energy companies has shown that at most of them the planned repairs of equipment of power plants, heat and electricity grids, and accumulation fuel inventories were at a higher level than last year.

To date, implementation of the calendar schedule for the repairs programme, is as follows: power boilers (99.8%), steam turbines (98.7%), hot water boilers (100%), and heating networks (105.6%).

By the beginning of the autumn-winter period, two backbone 500 kV transmission lines had been put into operation, "Khabarovskaya Substation – Primorskaya TPP" and 500 kV interconnections of the "Amurskaya Substation – Khabarovskaya Substation" with the Bureyskaya HPP. This significantly enhanced the reliability of energy supply of OAO "Dalenergo" and ensure transmission of electricity from all of the power generators of the Bureyskaya HPP.

As at 15 November 2004, the fuel inventories accumulated by Holding Company's entities amounted to 17,159,500 tonnes of coal (119.3% of the target) and 2,984,800 tonnes of fuel oil (117.3%).

However, because of customer non-payments, the situation with accumulating fuel inventories remains grave at OAO "Ulyanovskenergo", where fuel oil inventories amount to a mere 4% of the target, OAO "Tyvaenergo" (38.8% of the target for coal), OAO "Berezovskaya TPP" (62.1% of the target for coal), OAO "Sakhalinenergo" (75.4% of the target for coal), OAO "Dalenergo" and OAO "Kamchatskenergo" (67.1% and 72.8% respectively of the target for fuel oil).

Energy Distribution. On average, the collection of electricity and heat bills in the ten months of 2004 throughout the Holding Company of RAO "UES of Russia" stood at 97.7%. As at 1 November 2004, the net debt owed by consumers to the RAO UES entities for heat and electricity grew from RUB67.3 billion to RUB68 billion.

The level of customer payments remains low, based on the 10 months results, at OAO "Ingushenergo" (52%), "Buryatenergo" (89%), "Komienergo" (92%), "Yantarenergo" (93%), "Sevkavkazenergo" (93%), "Astrakhanenergo" (95%), "Tulenergo" (95%), "Vladimirenergo" (95%), "Kostromaenergo" (96%), "Tomskenergo" (96%), "Tverenergo" (97%), "Ulyanovskenergo" (97%), "Bryanskenergo" (97%), "Kalugaenergo" (98%).

As before, the principal non-paying consumers are entities of the housing and utilities sector (the debts owed by them are in excess of RUB29.46 billion, or 43%) and wholesale resellers (RUB22.57 billion), which are mostly controlled by the local authorities. The level of payments by the consumers financed by the Federal Government in January-October remains low, standing at 94%, which is primarily due to the poor payment discipline of the Defence Ministry.

The situation is most serious with the utilities payments to OAO "Ingushenergo" (25%) OAO "Buryatenergo" (76%), OAO "Volgogradenergo" (83%), OAO "Tulenergo" (85%), OAO "Komienergo" (87%), OAO "Tomskenergo" (87%), and OAO "Ulyanovskenergo" (96%).

The situation is also alarming as regards payments by wholesale resellers of electricity to OAO "Komienergo" (61%), OAO "Buryatenergo" (73%), OAO "Altayenergo" (85%), OAO "Tulenergo" (85%), OAO "Astrakhanenergo" (86%), OAO "Vladimirenergo" (87%), OAO "Tomskenergo" (87%), OAO "Dalenergo" (89%), OAO "Tverenergo" (90%), OAO "Lenenergo" (90%), OAO "Ulyanovskenergo" (95%).

The stable operation of RAO UES entities during the autumn-winter period depends on consumer payments for the electricity and heat, as regional energos need to procure fuel and timely perform their obligations on the loans raised for that purpose. Because of the consumer non-payments at the height of 2003/2004 winter preparations, RAO UES companies are forced to reduce energy supplies to such consumers to the level of their effective demand. However, RAO "UES of Russia" emphasizes that such energy supply reductions put energy companies to a disadvantage, as they lead to reduction of energy sales and as a result, to a reduction of sales proceeds.

Despite the huge amount of funds allocated for winter preparations, the entities of RAO "UES of Russia" fully perform their obligations on tax payments to the Federal and local authorities and repay the restructured debts of the previous years in accordance with the schedule. In the 9 months of 2004, RAO UES enterprises paid RUB84.8 billion in federal and local taxes, up 8% in year-on-year terms (78.6%). By the year-end, this figure is expected to reach RUB105 billion, which represents an increase of 5% on 2003.

The state of the preparations shows that the major energy companies will pass the autumn winter period without serious accidents or regional crises in energy supply.

However, the winter preparedness of the housing and utilities enterprises in some regions, such as the Republic of Tyva, Republic of Kalmykia, Republic of Chechnya, Republic of Karachay-Cherkessia, and in Magadan Region, Sakhalinskaya Region, Kamchatskaya Region, and Ulyanovsk Region gives cause for serious concern because of the lack of funds and equipment wear and tear. The unsatisfactory state of municipal boiler houses and heat mains may lead to interruptions of heat supply during the winter period, despite the high degree of winter preparedness at the energy companies.

 

 

 

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