OREANDA-NEWS. December 15, 2009. The Head of the National Electricity Regulatory Commission (NERC), Valeriy Kalchenko, stated that NERC intended to consider increasing the electricity tariffs for households in Q2 of 2010, after completion of 2009/10 heating season.   

Such NERC’s intention corresponds to our expectations. ‘Presently, the households electricity tariffs cover only 30% of its generation costs’, comments for UBR Yan Lipchinsky, the analyst of Astrum Investment Management.            

According to Valeriy Kalchenko, the 20%-30% price increase for population will result only in UAH10 monthly increase in electricity payment (from UAH30 to UAH40) and, thus, such increase is not supposed to have significant effect upon the financial status of households. As reported earlier, in July 2009 the National Electricity Regulatory Commission of Ukraine submitted to the Cabinet of Ministers a proposal to increase the retail electricity prices for households by 70% in two stages: in July and September 2009. Nevertheless, due to the presidential pre-election campaign such proposal was not supported by the Cabinet of Ministers. So, we expect that the electricity tariff increase for households in 2010 can total 70%, thus facilitating the electricity tariff growth and making the thermal power plants of Centerenergo, Dneproenergo, Donbassenergo and Zapadenergo profitable. Increased retail electricity price shall also enable NERC to raise the oblenergo’s tariffs for electricity transmission and supply in 2010, Lipchinsky says.