Russia: Major gas supply cuts to power plants will hit output - national grid spokesman

Source: BBC Monitoring Africa - Political

Publication date: Apr 03, 2000

Text of report by Russian news agency RIA

Moscow, 3rd April: Open Joint-Stock Company [Russian gas giant] Gazprom cut gas deliveries to federal power stations by almost three times and to local electricity power providers by 1.7 times from 1st April without warning. This will inevitably lead to a cut in electricity production and limits on supplies to consumers of at least 25 per cent, the official spokesman for [national grid company] Russian Joint-Stock Company Unified Energy System of Russia [UES], Andrey Trapeznikov, told RIA today.

Trapeznikov said federal power plants, the mainstay of the electricity system, which support the system's main indicator, current frequency, at the start of the second quarter started to receive 21.8m cubic metres a day instead of 53.7m. Local providers suffered a cut from 310m cubic metres to 193m cubic metres a day.

Trapeznikov said as a result of "such significant cuts a real threat arises to the reliable maintenance of the country's power- supply system". He said that "in these conditions, to prevent destabilization of the system, UES will be forced to start cutting off en masse consumers who don't pay their power bills. They account for over 50 per cent of all consumers and owe UES over R134bn".

Trapeznikov said UES and Gazprom were still trying to reach an agreement on second-quarter gas supplies. He said this means that Gazprom's unilateral move is "irresponsible". Moreover, a plan approved by the Fuel and Energy Ministry and the Economics Ministry envisages gas supplies in the second quarter of no less than 26bn cubic metres, while Gazprom intends to deliver no more than 22.5bn cubic meters.

UES cannot make up the difference using other types of fuel, since the oil companies will not deliver more than the amounts set down in the energy and economics ministries' plan, Trapeznikov said.

He said [UES chief] Anatoliy Chubays will today send a telegram to the heads of the Russian regions and Federation Council Chairman Yegor Stroyev warning that UES will toughen up its policy on nonpayments after Gazprom's move.

Trapeznikov said Chubays plans to discuss the situation with Gazprom head Rem Vyakhirev 5th April.

Publication date: Apr 03, 2000 ) 2000, NewsReal, Inc.

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