Energoatom Rocking The Boat?
10 October 2008
The nuclear electricity company, Energoatom is working to change legislation in order to be allowed to export electricity which is in excess of internal demand. This will allow Energoatom to export electricity to Russia without the approval of local sector regulators. At the same time, the Prosecutor General’s Office has opened an investigation into the misuse of almost USD 13 mln by Energoatom?s management. Concorde Capital: After Energoatom?s management changed in February 2005, the company started actively lobbying for the liberalization of legal restrictions. In July the company won a case against the National Electricity Regulation Commission (NERC), where it complained that the NERC was setting unjustifiably low tariffs, and the company?s tariffs were increased by 16%. Now the company is fighting against export restrictions. The behavior of Energoatom?s management is annoying regulators, so there is a chance the management will be replaced. We believe investigation of the company?s management is related to their rebellious behavior.
