Energy Sales

In 2002, customers paid 102% of amounts charged for the power consumed, which takes into account repayment of early debt arrears.

• In the 12 months of 2002, the revenue collected from sales of electricity by RAO "UES of Russia" reached 102% (this figure includes payment of receivables by enterprises).
• The cooperation agreements signed by RAO "UES of Russia" with the heads of regional administrations of the Russian Federation ensured actual participation of regional energos in the formation of regions' consolidated budgets and in the relationships on the interbudgetary level, defining distribution of responsibility between energy supply enterprises and the regional administrations in maintaining the fuel and finance balances.
• Efforts to recover overdue debts owed by energy consumers funded from the federal budget were increased pursuant to rulings of arbitration courts and writs of enforcement.
• Programs of regional energos intended to deal with the problem of overdue receivables (including "unrecoverable" and "subject to moratorium" ones) were optimized. As a result of this effort, the total receivables were reduced by 13%. The Company was able to ensure full payment of current energy accounts and prevent power supplies not paid for in all consumer groups, except for households.
• In 2002, efforts to deal with problem consumers by making individual monthly plans for making energy payments continued. More severe measures were imposed on consumers not paying for the energy supplied under power supply contracts (i.e. housing and public utilities sector and defence industry enterprises).
• A model of the retail electricity market has been developed, defining the key aspects of restructuring the regional energos' energy sales units.

In 2002, RAO "UES of Russia" was able to fulfil its main objectives in energy sales. Almost all principal consumer groups, except for households, paid in full for the energy supplied to them. Incomplete payment of energy charges by households (97%) was due to the fact that administrations in some regions of the Russian Federation failed to pay compensation of the shortfalls in regional energos' revenues related to price reductions granted to some categories of individuals with respect to payment of electricity and heat charges.