Enhancement of the operational management system undertaken in 2002 ensured successful work of the Holding Company's enterprises during the autumn/winter period.

Operational management of RAO "UES of Russia" is handled by its executive staff and covers the following aspects: overall management of the SDCs' activities, management of the energy companies supplying electricity to the problem areas of the Russian Federation, situation management in dealing with certain issues of energy companies' work.

One of the instruments of operational management is the establishment and work of committees and external systems comprising representatives of different entities of the Holding Company, which makes it possible to coordinate the activities of the whole of the Company (Anti-crisis Ad-hoc Committee of RAO "UES of Russia", Operational Commission of RAO "UES of Russia", a system of project-specific meetings, including conference calls)

In 2002, the work of the Anti-crisis Ad-hoc Committee of RAO "UES of Russia" was concerned with the issues of fuel supply, maintenance campaign and funding required for going through the autumn/winter period. This work made it possible to prevent emergencies at energy companies supplying electricity to the regions which face unfavourable social and economic situations and danger of natural disasters (first of all, the energy companies in the Far East of Russia).

Quarterly production and financial programs (PFPs) were used as one of the major instruments of operational management of energy companies' activities in 2002. These programs include power and fuel balances, fuel and finance balances, and budget highlights. The production and financial programs of energy companies have been used to prepare daily schedules of fuel supply. An improved quality of PFPs and a better control over their realization had a positive influence on the energy companies' production and financial results and enabled some of them to terminate crisis management. The operational management of energy companies in 2002 was handled by the executive staff of RAO "UES of Russia" together with the energy management companies.

In 2002, the Operational Commission of RAO "UES of Russia" worked efficiently. The Commission's primary task is to regulate and control the production and business operations of energy companies.

The overall result of operational management in 2002 was stable operation of the energy companies of RAO "UES of Russia" in the main lines of business and complete readiness of the Holding Company's enterprises for the autumn/winter periods of 2001/2002 and 2002/2003. Such readiness was achieved through the efficient monitoring of fuel availability and maintenance campaign, timely payments for energy and fuel, and reliability of energy equipment operation.

RAO "UES of Russia" ensured the prescribed fuel inventories by 1 October 2002 and completion of energy companies' preparations for the autumn/winter period of 2002/2003. This resulted in stable operation of energy companies during the autumn/winter of 2002/2003. Almost all regional energos supplying electricity to the problem areas of the Far East of Russia were able to collect 100% of consumer payments for the energy supplied. All energy companies of RAO "UES of Russia" obtained readiness passports for the autumn/winter period despite more stringent requirements imposed by special inspections.

The outages in electricity and heat supply to consumers that occurred in some areas of Russia were primarily due to poor condition and bad preparation of equipment at municipal boiler plants, as well as bad conditions of heat and electricity distribution networks in the housing sector.

In view of this situation, one of the major tasks of operational management at RAO "UES of Russia" was to coordinate the activities of the Holding Company's enterprises with the entities of the housing and public utilities sector. RAO "UES of Russia" concluded an "Agreement on Cooperation and Distribution of Powers between RAO "UES of Russia" and the Russian State Construction Committee" dated 13 February 2003 and will implement measures envisaged by the "Program of Joint Actions of the Russian State Construction Committee and RAO "UES of Russia" for energy companies' preparation for and passing through the forthcoming 2003/2004 autumn/winter period".