Moscow. 11 October 2004. OAO "Tulenergo" continues to supply power in the normal mode to customers in Tula Region, including the city transport system. This became possible after the energy company was given guarantees by the Tula Region Governor Vassily Starodubtsev on payment of the current debts of the municipal enterprise "Tulgorelectrotrans".

The power supply to the city's electric transport system was restricted on 9 October as a result of the failure by the Tula City Administration to settle its debts owed to OAO "Tulenergo" by the city's municipal enterprises. Despite the promises given by the Tula authorities to pay the current debts in the amount of RUB20 million by 8 October, that amount was not received by OAO "Tulenergo". On the same day, Vladimir Arsentyev, Acting Head of Uprava ("Council") of the city of Tula, declared that the authorities did not have the necessary funds and would have to stop the operation of the city electric transport. After that, on 9 October, the staff of "Tulgorelectrotrans" independently limited the power supply without disconnecting the power feeders. This was done because a notice had been received from "Tulenergo" stating that Tulgorelectrotrans owed in excess of RUB10 million to the energy company.

However, the removal of restrictions on power supply does not mean that all problems concerning debts owed by Tula's municipal enterprises to the energy company have been settled. Currently, out of the more than RUB1 billion of debt owed to the regional energo, one third is owed by the city's municipal enterprises.

RAO "UES of Russia" and "Tulenergo" emphasize that the restrictions are unprofitable for the energy company, because they result in lower sales of electricity, and as a consequence, reduction in sale proceeds. At the same time, the regional energo is in no position to grant credits to insolvent consumers, as it has its own liabilities, including those to fuel suppliers.

RAO "UES of Russia" supports the actions of its subsidiary to prevent unpaid electricity supply as required by the Russian Government and RAO "UES of Russia". At the same time, RAO "UES of Russia" hopes to establish a constructive dialogue with the authorities of the city of Tula and the Tula Region Administration.