Fuel Supplies

Throughout 2002, fuel supplies to power plants of RAO "UES of Russia" remained stable in all regions. As a result of the timely measures taken in 2002, the targets for accumulation of fuel stocks were met practically at all power plants both as at 1 October 2002 and as at 1 January 2003. As at 1 January 2003, the coal stocks at the Holding Company totalled 14.4 million tons, while black oil stocks made 2.85 million tons, exceeding the targets by 6.5% and 3.3%, respectively. The coal stocks available at the federal power plants were 4.3% higher than the target, while fuel stocks were 5.5% higher than the target.

In 2002, the Holding Company's power plants were supplied fuel worth RUB 160.5 billion, including coal valued at RUB 45.1 billion, black oil valued at RUB 17.5 billion, and gas valued at RUB 97.9 billion. The payments for fuel totalled RUB 165.6 billion, including RUB 47.3 billion for coal, RUB 16.5 billion for black oil, and RUB 101.8 billion for gas. Together with payments for the current supplies, the Company took steps to repay its fuel arrears accumulated in the previous years.

In 2002, the total debt owed for the received fuel decreased by RUB 5.1 billion (21%), including RUB 3.8 billion (45%) owed for gas. As of 1 January 2003, the debt owed for fuel amounted to RUB 19.1 billion, including RUB 3.9 billion owed for coal, RUB 10.6 billion for black oil, and RUB 4.6 billion for gas.

In 2002, coal consumption was reduced by 3.3% compared to 2001, and by 11.7% compared to 2000, while consumption of black oil was reduced by 7.9% and 17.7%, respectively. Gas consumption in 2002 increased 0.9% and 4.2%, respectively, to 132.4 billion cbm.

   Fuel consumption at Holding Company's power plants in 2000-2002

	2000	2001	2002
Coal, million tons	120.1	109.6	106.0
Black oil, million tons	8.5	7.6	7.0
Gas, billion cbm	127.1	131.2	132.4

Just like the previous years, 2002 showed a tendency towards increase in fuel use efficiency throughout RAO "UES of Russia" Holding Company. The fuel consumption rate was 336.5 g/kWh for electricity and 145.4 kg/Gcal for heat supplied, which is lower by 1.1 g/kWh and 0.5 kg/Gcal respectively, than in 2001, and 0.8 g/kWh below the norm for electricity and 0.3 kg/Gcal for heat. This resulted in savings of 752.5 thousand tons of fuel equivalent, including 527.5 thousand tons saved on electricity generation, and 225.0 thousand tons saved on heat generation.

At the TPPs owned by regional energos, the fuel consumption rate for electricity generated was 335.3 g/kWh compared to the norm of 336.2 g/kWh, which is lower than the relevant figure for 2001 by 1.5 g/kWh. Fuel consumption rate for generated heat reached 144.6 kg/Gcal, which is 0.2 kg/Gcal below the norm and 0.5 kg/Gcal lower than the figure for 2001.

Fuel use efficiency at the TPPs of the Holding Company increased as a result of measures taken to improve equipment performance and a better electricity and heat generation structure at the TPPs.

Fuel consumption rate for electricity produced by federal power plants in 2001-2002, g/kWh

Name of power plant

2001

2002

2002/2001, %

337.4

339.8

2.4

365.1

360.4

-4.7

318.7

327.1

8.4

308.0

310.9

2.9

403.1

402.0

-1.1

356.3

354.8

-1.5

393.8

383.2

-10.6

310.9

306.7

-4.2

329.4

328.0

-1.4

329.3

327.2

-2.1

414.0

411.9

-2.1

347.4

349.2

1.8

267.0

264.1

-2.9

330.0

330.2

0.2

365.3

373.2

7.9

392.5

387.7

-4.8

407.4

403.7

-3.7

495.7

511.3

15.6

344.1

344.0

-0.1