NERC considers quadrupling residential electricity tariffs by 2014

The National Electricity Regulatory Commission is looking at revising residential electricity tariffs in December, commissioner Kostiantyn Telychko said on August 31, according to Interfax. Though the regulator has not yet approved the expected level of tariff revision and an exact plan yet, officials said NERC will most likely implement a six-stage increase in tariffs over 2012-2014, with a 25% tariff increase at each stage, thus quadrupling the tariff by end-2014 to an economically justified level of UAH 1.06/kW. Antonina Davydenko: The announcement is only slightly positive for GenCos (Centrenergo, CEEN UK, BUY; Donbasenergo, DOEN UK, BUY; Zakhidenergo, ZAEN UK, HOLD; Dniproenergo, DNEN UK, BUY) given that the previous increase in electricity tariffs for households in January was below expectations – only a 30% increase for high consumption households vs. an expected 50% increase for all households.