On June 1 2004, AO MOSENERGO will become a participant in the wholesale electricity market. The Company will have the opportunity to purchase and sell electricity on the hourly basis at free prices. Each market participant can sell no more than 15% of its generation and purchase no more than 30% of its own electricity consumption.

The participation in the trading on the hourly basis will bring economic benefits for the Company as it makes possible to more precisely plan the consumption and generation modes and provides pricing flexibility. The balanced trading strategy would enable the Company to efficiently implement management decisions, and optimize day/night loads. AO MOSENERGO will use additional funds to carry out maintenance and upgrade equipment.

The Company was preparing to enter the wholesale market for half a year. During this time, AO MOSENERGO negotiated with all market infrastructural divisions.The Company had drafted agreements and tested the equipment. The agreements that were reached at the preparatory stage would help to more precisely forecast the trading results, minimize the deviation from contract obligations, thus, increasing AO MOSENERGO's efficiency.