Moscow

The electricity and heat debt of the Ministry of Defense that is owed to AO MOSENERGO continues to grow. Due to the irresponsible position of the officials, AO MOSENERGO incurs multimillion losses that endanger the reliability of power supply. As a result, AO MOSENERGO sent a letter to Sergei Ivanov, minister of defense, asking him to intervene into the situation and help streamline payment practices of the military ministry.

The debt of the Ministry of Defense accounts for 60% of the total liability of federal organizations that is owed to AO MOSENERGO. As of March 1, 2005, entities that are subordinated to the Ministry of Defense (MoD) owed to AO MOSENERGO 673 mn rubles. The MoD has not fulfilled its obligations regarding the full and timely payment and is violating the decrees of the Russian Government and terms of power supply agreements.

In reply to AO MOSENERGO’s inquiry, the Ministry of Finance attributed the increase in the electricity debt to the fact that up to the present time the MoD failed to submit payment documents that allow the Federal Treasury to execute claims regarding electricity and heating bills. The MoD has not yet provided a sensible explanation of the current situation. Apparently, payment delays are caused by mere negligence and lack of organization on the part of military officials.

AO MOSENERGO expects that the MoD will fulfill its obligations with respect to the debt problem. Ministry officials and its residential organizations should remember that non-payment deprives AO MOSENERGO of funds that it would otherwise use to enhance the reliability of the power system. Lack of action on behalf of military officials endangers the reliability of power supply for residents of the Moscow region who duly pay for consumed power.