Moscow. 10 November 2004. RAO "UES of Russia" is concerned about non-payment by wholesale resellers for the electricity and heat supplied by OAO "Astrakhanenergo".

The municipal energy utilities MUP "Astrkommunenergo" and MUP "Kommunenergo" owned by the Astrakhan City Administration are responsible for over 90% of the receivables of OAO Astrakhanenergo. In the first ten months of 2004, the debts owed by the municipal utilities reached RUB233.3 million, of which RUB208.7 million is owed by MUP "Astrkommunenergo" and RUB24.6 million by MUP "Kommunenergo".

The agreements on debt restructuring on condition of full payment for the current electricity consumption reached among OAO "Astrakhanenergo", the Administration of Askrakhan Region, the Administration of the city of Astrakhan, and the management of the wholesale resellers of electricity and heat are routinely violated.

Specifically, as at 1 November 2004, the payments for the electricity consumed in October by Astrakhan's wholesale resellers amounted to a mere 14%. The debts owed for electricity increased by RUB40.7 million, and the debts for heat and hot water supply growing by RUB98.4 million.

Such problems with payments for the energy companies' supplies make it difficult for OAO "Astrakhanenergo" to pay fuel suppliers and repair and maintenance contractors. The debt owed by the energy company for the natural gas supplies has reached RUB213 million. Because of that, OAO Astrakhanmezhregiongaz reduced its natural gas supplies to the power plants of OAO "Astrakhanenergo" by half, which led to a reduction in the power plants' output and, as a consequence, limitation of heat and electricity supply.

This has an adverse effect on the preparations at OAO "Astrakhanenergo" for the 2004/2005 autumn-winter period.