Kievenergo Hoping For Introduction Of Network Connection Fees

According to a local newspaper, the Kyiv City Council may vote to introduce electricity network connection fees for new business consumers. According to Kievenergo’s (KIEN: BUY) estimates, the connection charge should be around USD 850/kW which will bring about USD 10-20 mln p.a. to the company. Plans to introduce connection fees in all the regions of Ukraine are being pushed forward by the government.  Alexander Paraschiy: Russian companies already charge connection fees for new consumers, and this fee in Moscow is almost USD 500/kW more than what KIEN wants to introduce in Kyiv. The introduction of connection fees will boost power distribution companies’ and KIEN’s cash inflows.