7.3. Repairs and Maintenance

In 2004, the Holding Company's energy enterprises fully implemented
their repair programmes on all groups of capital equipment. During the year, repairs were
carried out on generators with a combined capacity of 35,500 MW, power boilers with a
total steam capacity of 150,600 t/h, hot-water boilers with a total heat capacity of 8,500
Gcal/h; 677 km of district heating pipelines were replaced.
Timely completion of equipment repairs made it possible to prepare the
Holding Company's facilities for the autumn/winter peak load. All 903 energy installations
scheduled for inspection received readiness certificates for the 2004/2005 autumn-winter
period.
Efforts were made to develop competition in the power equipment repair
and maintenance sector, introduce highly effective methods of equipment repair and enhance
the quality of services provided. The share of contracted repairs grew in 2004 to 64% of
the overall volume, reaching 68% in H2 2004. The share of materials, works, and services
procured through competitive process in the total volume of purchases for repair and
maintenance purposes increased in 2004 by 15 percentage points to 79%.
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