Mosenergo to invest $440m in 2003

Mosenergo is planning to allocate RUR14bn (around $439m) in investments in 2003, Deputy General Director of the company Vladislav Nazin said at a press conference today. The official was quoted as saying amortization accounts for RUR5.9bn (around $185m) of this amount. Amortization was RUR5.8bn (around $182m) in the company's construction program. According to Nazin, Mosenergo is substantially lagging behind its schedule of putting new energy generating capacities into operation, while the growth rate of energy consumption was 4.4 percent in Moscow and 5.6 percent in the Moscow region this year. Despite the Russian government's decree on pricing, Mosenergo still does not include construction costs into its fees.

The company has drafted all documents for increasing its tariffs to be submitted to the Moscow regional energy commission. However, the final decision on increasing the company's tariffs will be made after the regional energy commission approves gas tariffs. Up to 40 percent of Mosenergo's revenues are spent on gas supplies, Nazin pointed out.

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