OREANDA-NEWS. May 25, 2010. On May 20th, during its open meeting, the National Electricity Regulatory Commission of Ukraine (NERC) revised the tariff rates for 36 DisCos as for electricity supply via regulated tariffs since June 1, 2010. According to the Commission, some DisCos have exceeded the targets for the productive power supply by an average of 5%. First of all, this has been caused by the industrial consumption growth. As a result, the GenCos received an additional UAH 440.709mn (total) income from their electricity sales. In connection with this fact, NERC has reallocated UAH 42.307mn for dividend payouts among those companies, where the State owns more than 50% shares. The Commission has found that such a procedure of redistribution of additional funds earned in 2009 will apply to the tariffs for DisCos for the period from June 1, 2010 through June 1, 2011.

Millennium Capital considers this news to be positive for DisCos. According to Millennium Capital’s estimates, this change in tariffs will increase DisCo’s revenues by no more than 1.6% (by comparison to the previously effective tariffs), because NERC does not plan to increase electricity costs for ultimate consumers.