Kyivenerho's Board Chairman Eduard Sokolovskiy announced this at a press conference.

According to Sokolovskiy, Kyivvodokanal owed over Hr 392 million as of Dec. 1.

"The debt of Kyivvodokanal amounts to UAH 392 million. [Kyivvodokanal] is doing nothing to improve settlements," he said.

According to him, Kyivenerho will be forced to reduce electricity supplies to Kyivvodokanal to the minimum quantity required to prevent an environmental disaster of the company fails to pay its debt by Dec. 4.

Sokolovskyi said that Kyivenerho has notified the Kyiv municipal administration and Kyivvodokanal of its intention to reduce electricity supplies to the company if it fails to pay its debt.

Electricity consumers of all categories owed a total of about Hr 696 million to Kyivenerho as of Dec. 1.

As Ukrainian News earlier reported, Kyivenerho began cutting electricity supplies to enterprises financed from the municipal and district budgets of Kyiv on Nov. 26 because of their electricity debts but it restored electricity supplies to them on the next day.

Kyivenerho ended 2007 with profits of Hr 6.149 million; its net revenues increased by 40.83 percent or Hr 1,340.535 million to Hr 4,624.091 million in 2007 compared, with 2006.

The state owns a 50 percent stake + 1 share in the Kyivenerho joint-stock company (this stake has been contributed to the statutory capital of the national joint-stock company called the Energy Company of Ukraine), Kapiton Trading Limited (Cyprus) owns 24.98 percent, and Fluminea Limited (Cyprus) owns 15.72 percent.