Electricity

Ukrainian President Viktor Yuschenko issued a decree, which bans the privatization of four electricity generation companies – Centrenergo [CEEN UZ, BUY], Dniproenergo [DNEN UZ, BUY], Donbasenergo [DOEN UZ, BUY] and Zakhidenergo [ZAEN UZ, BUY] – as well as turbine manufacturer Turboatom [TATM UZ, HOLD] and the Kryvyy Rih Mining and Dressing Plant of Oxidized Ores.

Ukrainian deputies extended the ban on bankruptcies in the energy sector until January 1, 2011. The Law on Amendments to the Law of Ukraine "On measures aimed at ensuring the stable functioning of the fuel and energy complex” was supported by 381 of 450 people's deputies in Parliament on Tuesday.

In January-November 2008, electricity consumption in Ukraine rose by 0.8% YoY (to 169 thsd GWh), while in 10M08 it grew by 1.1% YoY. Monthly electricity consumption in Ukraine continued falling and, in November 2008, decreased by 16% (to 14.4 thsd GWh).

The National Electricity Regulatory Commission of Ukraine (NERC) will not revise electricity tariffs for all consumer groups until April 2009, said Commission Head Valery Kalchenko.

According to the state wholesale electricity operator “Energorynok”, from November 10 through November 16, 2008, electricity consumption in Ukraine slumped 13.2% YoY, from 24.6 GW per week for this period in November 2007 to 21.4 GW per week in November 2008.

Difficulties in financing the needed investment into the Ukrainian electricity sector and the high level of depreciation of its assets are the key reasons behind Fitch’s negative outlook on the sector.

The National Electricity Regulation Commission (NERC) retained its regulated electricity tariff for clients other than the general public at November’s level, which is UAH 436 (USD 65) per MW and UAH 585 (USD 87) per MW for large and small consumers respectively.

The National Electricity Regulation Commission (NERC) retained its regulated electricity tariff for clients other than the general public at November’s level, which is UAH 436 (USD 65) per MW and UAH 585 (USD 87) per MW for large and small consumers respectively.

A number of consequent news on Ukrainian electricity generating companies led us to expect further conflict around the shareholdership in GenCos. . After Monday’s statement by the Ukrainian Deputy Coal Minister that Ukrainian electricity generating companies owed UAH 426 mln for coal supplied, two news which we view as connected also appeared yesterday.

The Ministry of Fuel and Energy notes the need to invest UAH 15 bln in the development of the fuel and energy complex and investment projects in the energy sector in 2009.