Electricity

The Ministry of Fuel and Energy has released statistics on electricity consumption and production in Ukraine for December and 2009 as a whole. Electricity production in Ukraine grew by 6% YoY in December 2009 and by 11% MoM. For the whole of 2009, Ukraine produced 10% less electricity than it did in 2008.

DTEK Vostokenergo and Ukrinterenergo have acquired the right to export electricity in February 2010 from Ukrenergo. Zakhidenergo [ZAEN UZ, HOLD] didn’t participate in this auction, although the Company had earlier intended to do so.

The National Energy Regulatory Commission (NERC) has approved a UAH 104 mln (USD 13 mln) investment program for Kyivenergo [KIEN UZ], a utilities provider for the City of Kyiv. Almost all of the stated financing will be allocated to capital investments. Initially, KIEN applied for a program in the amount of UAH 183 mln, but the regulator excluded some tariff components. In 2009, KIEN’s investment program was valued at UAH 163 mln.

National Energy Regulatory Commission (NERC) approved UAH 199 mln (USD 25 mln) investment program for largest Ukrainian electricity distribution company Dniprooblenergo [DNEN UZ, BUY]. UAH 140 mln (USD 18 mln) will be allocated on capital expenses, which foresee construction and reconstruction of 270 km aerial power grids and 28 km cable electricity grid.

National Energy Regulatory Commission (NERC) increased wholesale electricity price for January 2010 by 3% to UAH 441 (USD 55) per MWh.

DTEK Vostokenergo and Ukrinterenergo have acquired access to 100 MW and 150 MW electricity export capacities, respectively, for January 2010. DTEK paid UAH 3.6 mln for its access, while Ukrinterenergo paid UAH 4.5 mln. Zakhidenergo [ZAEN UZ, HOLD] also participated in the auction but did not purchase anything.

EU ministers approved Ukraine’s acceptance to the European Energy Community last Friday. According to European Union Energy Commissioner Andris Piebalgs, this move could help Ukraine, as an important transit country, upgrade its infrastructure. The European Energy Community holds the objective of securing energy supplies between its respective member countries.

Yesterday, Ukrenergo conducted an auction for electricity exports for the year 2010. Although Ukrenergo announced the auction for a 1.5thsd MW export capacity for all interconnections, the amount actually turned out to be less, as only those that are connected to the UCTE were sold. Zakhidenergo [ZAEN UZ] acquired access to a 100 MW electricity export capacity at a price of UAH 56 mln, while DTEK Vostokenergo acquired a 150 MW export capacity for UAH 83 mln and the last available lot for 25 MW was acquired by Ukrinterenergo for UAH 2 mln.

The auction for Ukrainian electricity exports, which was blocked by a court decision, may be held today. There are two court rulings against holding electricity auctions, both of which were initiated by the current power export monopoly, Ukrinterenergo, and its affiliates.

Компания «Укрэнерго», оператор магистральных электросетей, объявила аукцион на доступ экспортным сечениям электросетей на 2010 год в объеме 1,5 тыс. МВт. Объявленные 1,5 тыс. МВт были разбиты на 18 лотов, среди которых 275 МВт в направлении сети UCTE, 135 МВт в направлении Польши, 275 МВт в направлении Беларуси, 125 МВт в направлении Молдовы и 800 МВт в направлении России. Аукцион должен быть проведен 15 декабря 2009 года.