Operating Limitations Prolonged For Thermal Power Plants Using Light Coal.

The Wholesale Electricity Market (WEM) Council voted to prolong the temporary work limitations for TPPs operating on light coal. The limitations which were to be cancelled October 1, will remain in place until November 1. The NC ECU said the restrictions were needed to counterbalance the deficit of light coal and the surplus of anthracite coal in Ukraine. TPPs fueled with anthracite coal will receive preference in October. Concorde Capital: These work restrictions (refer to our GenCos update of September 26 for more details) are beneficial for Donbasenergo (DOEN: BUY) as this company has no light coal units in operation. However, this limitation negatively affects Vostokenergo?s power plants (a 100% privately owned company): two out of three of the company?s TPPs are fueled with light coal.  The limitation of Vostokenergo?s TPPs is beneficial for all the other GenCos, in 1H05, Vostokenergo was the most utilized company.

% Of Coal-Fueled Capacities Where Work Is Temporary Limited:

Donbaenergo (DOEN: BUY): 0%
Dniproenergo (DNEN: BUY): 21%
Centrenergo (CEEN: HOLD): 26%
Zakhidenergo (ZAEN: BUY): 39%
Vostokenergo: 66%