OREANDA-NEWS. On 20 August 2009 was announced, that Irkutsk Power Supply Company (a branch of JSC Irkutskenergo) and Baikalsk Pulp and Paper Plant concluded a contract of power supply of Baikalsk and an agreement of purchase and sale of thermal energy. Thus, the energy company undertakes to supply with thermal energy the town of Baikalsk during the whole heating season, without taking onto the books or servicing the heat power generation station of Baikalsk Pulp and Paper Plant.

With regard of the social and economic problems of the town and under the orders of the Russian Government, Irkutskenergo specialists have worked out an optimal scheme of supply of the town with thermal energy. As agreed by the parties, Irkutskenergo shall buy from Baikalsk Pulp and Paper Plant thermal energy produced by its thermal power generation station (under the fixed tariff at the interrupted production process) at the price of 879.40 roubles per 1Gcal and sell it to the Baikalsk consumers. The selling price for the town population will correspond to the fixed tariffs for Irkutskenergo – 421 rouble per 1Gcal. The shortfall in income of the Company shall be covered by their inclusion in the tariff for thermal energy in 2010. Realising the importance of the timely start of the heating season and the necessity of the target financing of its preparation, Irkutskenergo decided to pay for the thermal energy for the whole heating season of 2009-2010 in advance, having invested, thus, 140m roubles in the repair and maintenance of the thermal power generation station. In the future the Irkutsk Region Government will finance restoration of energy supply of Baikalsk Pulp and Paper Plant and preparation of it thermal power generation station for industrial exploitation in the amount of 200m roubles (according to the order of Vladimir Putin, Chairman of the RF Government). The terms and conditions of payment are within the competence of the Irkutsk Region Government. After the paper plant starts working again, it will receive 150m roubles more for cover of costs for production of the main products (cellulose).

At the present moment the branch companies of Irkutskenergo continue repair, engineering and diagnostic work at TPGS of Baikalsk Pulp and Paper Plant, executing to the full the obligations undertaken by the Company to prepare Baikalsk for the heating season that will start within the fixed term. The Company also conducts project work connected with construction in the Baikalsk electric boiler for the next heating season of 2010. The proposal of Irkutskenergo was supported by the Russian Government, and the volume of financing will be around RUR 300m.