Electricity

The Cabinet of Ministers decided to cancel the existing calculation approach for the electricity grid connection fee, which is to be paid to local electricity distribution companies (oblenergos) by all new consumers, such as newly-constructed residential and commercial buildings, as well as industrial plants.

The National Electricity Regulatory Commission (NERC) has revised upwards the electricity tariffs for industrial consumers – by 4.7% MoM for large industrial consumers amounting USD 84 per kWh and 5.0% MoM for small industrial consumers amounting to USD 110 per kWh.

The electricity generation company Dniproenergo [DNEN UZ, BUY], will hold an AGM on October 10. The AGM’s agenda includes approving financial results for FY2007 and the main financial and operational plans for 2008. The shareholders will also vote on changing the registrar of the company from “Ukrnaftogas”, which hindered DNEN from holding its AGM earlier this year.

Wholesale electricity price for September 2008, set by the National Electricity Regulatory Commission (NERC), increased 4% compared to August, reaching USD 76.2 per MWh. Thus a YtD tariff increase for January-September 2008 has reached 35.7% in local currency (UAH).

DTEK, the major shareholder of electricity generation company Dniproenergo [DNEN UZ] will invest USD 41 mln annually for reconstruction and modernization of power blocks at Dniproenergo during 2008-2012.

Electricity generation company, Dniproenergo [DNEN UZ], plans to put into operation 300 MW of installed capacities of #10 block at Kryvyy Rig TPP by the end of November 2008.

Electricity export from Ukraine decreased overall during 7M08 by 26.5% YoY. Exports to Hungary which account for the larger share of Ukrainian electricity exports decreased by 10% YoY or by 187 mln kWh to 1,670 mln kWh.

The new registrar of electricity generation company Dniproenergo [DNEN UZ] – Prominvestbank – has officially restored the register of shareholders of Dniproenergo, now allowing the company to hold an official AGM. This allows Dniproenergo to resume corporate governance and during the next EGM approve financial results for 2007 and approve development strategy for 2008.

On August 8, the electricity distribution company Odesaoblenergo [ODEN UZ] failed once again to hold an EGM to approve the results of the three-fold additional share issue initiated by the major shareholder VS Energy.

National Electricity Regulatory Commission (NERC) approved an increase of DTEK’s Vostokenergo power block # 9 at Lugansk TPP by 25 MW due to its reconstruction.