Electricity

Electricity distribution company Khersonoblenergo [HOEN] decided not to pay out dividends for 2007 during its AGM held Thursday, May 29. Shareholders decided to direct 95% of the company’s USD 0.043 mln FY07 net income to business development and 5% into the company’s reserve fund.

The National Electricity Regulatory Commission (NERC) approved a 30% nuclear electricity price appreciation starting June 2008, sending the price for nuclear electricity to USD 29 per MWh. This implies a nuclear electricity price appreciation of 70% YtD from USD 17 per MWh in the beginning of the year.

The National Electricity Regulatory Commission (NERC) has approved an industrial electricity tax appreciation of 4-5%, beginning in June. Low voltage industrial electricity consumers will see a tax increase of 4% to USD 96 per MWh and high voltage industrial electricity consumers will be handed a 5% increase to USD 73 per MWh.

Electricity distribution company Prykarpattiaoblenergo [PREN] announced a dividend payout of USD 0.3mln during its AGM Thursday, May 29. The company is directing 30% of its USD 1 mln net income for FY2007 to dividend payout, implying USD 0.003 per share.

Electricity distribution company Lvivoblenergo [LVON] failed to hold an AGM scheduled for May 27 due to lack of quorum. LVON has not held an AGM since 2001 due to the long-standing corporate conflict between joint shareholders Privat group and Surkis group ca. [22%] and Energy Standard group, which holds ca. 38% of the company.

Electricity distribution company Sevastopoloblenergo [SMEN] announced a dividend payout of USD 3.2mln during its AGM May 27. The company will direct 100% of its net income for FY 2007 to dividend payout, implying USD 0.12 per share.

Electricity distribution company Zhytomiroblenergo [ZHEN] decided not to pay dividends for FY2007 during its AGM May 20.

Electricity distribution company Odesaoblenergo [ODEN] approved a bond issue of USD 100mln during its AGM May 22, 2008. The money will go towards construction of the Combined Cycle Power Plants (CCPP) near the city of Odesa.

Poltavaoblenergo [POON] CEO Vladimir Cherniavskiy believes that privatization of the remaining 25% stake in the electricity distributor will solve a long-standing corporate conflict within the company. This will positively influence POON and open new perspectives for the company’s development, he told the Interfax news agency. During his interview, he also mentioned that successful privatization will allow the company to attract international funding for further business development.

Wholesale electricity price for June 2008, set by the National Electricity Regulatory Commission (NERC), increased 6% compared to May, reaching USD 64 per MWh. For January-May 2008, the increase of the wholesale electricity price amounted to 18.2%.