President Urges Electricity Sector Reform.

President Yuschenko ordered the Cabinet to put the government’s plan for the development of the wholesale electricity into action. In addition, Yuschenko urged the Cabinet speed up the debt offsetting process for utility sector companies. Concorde Capital: Ukraine is currently not ready to restructure the wholesale market from a one-buyer model to bilateral mutual contracts between producers and consumers. The realization of the debt offsetting law will bring more stability to the energy sector, but as the companies’ debts are going to be compensated by electricity consumers, this will increase electricity tariffs.