Unified Energy System of Russia
Urgent measures taken by management
During 1999 RAO UES of Russia generally maintained the reliable operation of
the Unified Power System and completely satisfied the growing demand for electricity by
increasing the loading at the most economically efficient stations in the system.
The fuel consumption per unit in the production of electricity was reduced by 1.89 g/kWh
and for heat energy production by 0.60 kg/Gcal, which is equivalent to a saving of 1.2
million tonnes of standard fuel. During 1999 losses in the power grids of RAO UES of
Russia were reduced from 3.75 per cent to 3.41 per cent of electricity generated.
The fuel problem. At the beginning of the
autumn-winter season a severe drop in temperature produced additional demand for
electricity. Under unfavourable conditions this resulted in increased loads on
thermo-electrical stations and therefore in unplanned fuel consumption. The accumulation
of essential fuel reserves in 1999 was complicated by an almost three-fold increase in
prices for heavy fuel oil, and a shortfall in domestic deliveries of oil products and gas
owing to increased volumes of exports, more strict payment requirements from suppliers and
the low solvency of energy consumers.
In late 1999 to early 2000 supplies of gas were improved due to the achievement of an
agreement between the management of RAO UES of Russia and GAZPROM OAO. Agreements
concluded with oil and coal companies made it possible to stabilise stocks of heavy fuel
oil and coal.
In addition to this RAO UES of Russia took emergency measures. A strict regime of
limitations and exceptions was established for customers defaulting on payments; all
supplementary financial resources, including monetary funds, liquid receivables and
federal trade allowances were directed to payments for fuel; a weekly review of the fuel
situation has been instituted at operational meetings of the Chairman of the Board of
Management.
All of the above made it possible in October-December 1999 to substantially increase
deliveries of coal, heavy fuel oil and gas to electric power stations and during the first
quarter of the year 2000 to stabilise the situation with regard to supplies of fuel to
federal stations and AO energo. At the beginning of the second quarter of 2000 reserves of
coal at the AO energos’ power stations stood at 1.3 mln tonnes and heavy fuel oil at 85
thousand tonnes above the planned level; at the federal stations reserves of coal stood at
430,000 tonnes, and of heavy fuel oil at 99,000 tonnes below the planned level. At a time
when gas was in short supply in late March and early April of this year, measures were
taken to reinforce efforts to achieve timely payment and accumulate reserves of fuel at
electric power stations.
Regional power-supply crises. By the beginning of the year 2000 the
Company had succeeded in significantly improving supplies of fuel in six of the 11
traditionally «critical» regional energy systems. The situation still remains critical
in the energy systems of the Arkhangelsk and Sakhalin regions, on Kamchatka and in the
Khabarovsk and Primorye territories. The main reasons for the regional crises are the
patently low prices for electricity and default on payment by customers.
Reduced frequency of electric current. As a result of the shortage of
fuel at electric power stations during the third and fourth quarters of 1999 the Unified
Energy System was obliged to operate at a reduced frequency. However, by the end of 1999
the frequency of current in the Unified Power System had been increased to standard levels
owing to measures taken to improve the fuel supply, strengthen dispatch operation
discipline and increase the responsibility taken by managers of the AO energos for
observing the limits set to balance transfers of energy and power. The average current
frequency for the year was thus held at 49.9 Hz, the same as in 1998. In January 2000 it
reached a level of 49.98 Hz, and in February it reached 50.00 Hz, which indicates that, in
principle, the problem has been solved.