Financial Results

Address to Shareholders from the RAO UESR Executive Office

Company's Business Results

Asset Structure

Volume of Products, Subscriber Fees, Revenues' Structure

Production Cost, Profit and its use

Accounts Receivable and Payable

Balance Sheet

Profit and Loss Account

RAO UESR Stock in the Securities Market

Summary of UES of Russia Coordination and Management Results

Electric Power Production and Transfer

Electric and Heat Power Markets

UES of Russia Dispatch Manegement

Subsidiary Management

Investments

Foreign Business Activity

Scientific and Technical Development of UESR

Audit Report

Information for Shareholders

Appendix

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Report's Home Page

Shareholder

UESR Home

Summary of UES of Russia Coordination and Management Results

Electric Power Production and Transfer

The year 1997 witnessed a further decrease in electricity production in comparison with previous years.

While in 1991-1994, the annual decrease in electricity production was 5-9%, in 1995 it was 1.8%, in 1996 1.4%, and in 1997 1.5%, that is, the rate of electricity production decline is getting slower. In the second half of 1997 there was a slight increase in electricity production (by 1.5%) in comparison with a similar period in 1996.

Production and Consumption of Electric Energy in Russia in 1992-1997
(kW/h, billion)*

* Without regard to the power stations working in classified districts and isolated regions.

The reduction in electricity production during the period 1990-1997 has been at a substantially slower rate than the recession in other industries.

Industrial production as a whole has dropped 54.3% since 1990, while electricity production has fallen 22.8%. The share of the power industry in gross domestic revenue increased from 3.4% in 1991 to 7.4%, evidence of a growth in production that requires higher levels of electric power.

Index of Production Levels by Industrial Sector, 1997 to 1990
(%)