Kyivenergo forecasts UAH 1.1 bln losses in 2009 due to inefficient tariffs

According to Eduard Sokolovskiy, the CEO of Kyivenergo (KIEN), the company’s gap between operating costs and revenue will amount to UAH 1.14 bln in 2009 (in case if heating tariffs in Kyiv will be slightly increased in June, according to Kyiv council ruling), and UAH 1.40 bln (in case if the tariffs will not be raised). Alexander Paraschiy: By Ukrainian legislation, all the losses resulting from inefficient heat tariffs should be compensated from the local budget. According to Kyivenergo, the city of Kyiv has paid UAH 0.90 bln on April 7, as a partial compensation of the accumulated losses in the previous years, which will allow the company to nearly break even in 2009. Currently it is not clear whether the city will be able to pay any amount of compensation for 2009 losses: the current budget does not provide for any compensation to Kyivenergo.