AO MOSENERGO focuses on service quality and optimization of sales among the population in the city and Moscow region. Efficient sales contribute to meeting deadlines in preparation for the winter season, maintaining equipment and creating necessary fuel stocks.

The number of «abusive» non-payers in Moscow (those who don't pay for one year and more) is around 4% of total customers. Most debtors among the population (15-18%) pay for electricity quite irregularly - once in several months. In 2003, AO MOSENERGO identified more than 65,000 individuals who had been late to pay for consumed energy. The Company advised all non-payers to pay their debts. In addition, AO MOSENERGO took legal action against non-payers who accumulated debts for more than 1.5 years. The Company filed around 19,000 claims trying to recover more than 53.5 m rubles. AO MOSENERGO also went to the Arbitration court claiming from non-payers more than 1.2 m rubles in back payments.

Low payments among the population result in lack of funds for AO MOSENERGO when it comes to capacity upgrades and annual maintenance. Thus, the irresponsible attitudes on the part of some individuals may harm interests of the whole population in the Moscow region.

In this situation, AO MOSENERGO has to take a tougher stand towards non-payers among the population. The individuals who don't pay for the electricity for a long period of time are cut off from the electricity supply on a temporary basis. In these cases AO MOSENERGO stresses that the cut off is an extreme measure that has to be taken after the failure of all other means. AO MOSENERGO aims to stick to the individual approach through cutting off the electricity in the case of abusive non-payers only.

AO MOSENERGO pays special attention to preventive measures.A temporary cut-off is based on communicating to the client the need of paying the debt. It is introduced as follows:

• In case of debts older than one month, AO MOSENERGO reminds the non-payer by phone of the need to pay the debt.
• If the debt is not redeemed in two weeks after the warning, the Company mails three notifications, each delivered at two week intervals
• If the debt exceeds three months, AO MOSENERGO sends a cut-off notification with the date when electricity supply would be discontinued.

In the first quarter of 2004, AO MOSENERGO found 2,587 customers who failed to pay for electricity. They owed AO MOSENERGO nearly 5 m rubles. Out of those who were warned about a possible cut-off, 61% eventually chose to pay their debts, which points to the efficiency of AO MOSENERGO's efforts.