Regulators Urge Electricity Network Modernization.

Yesterday the Minister of Fuel and Energy Ivan Plachkov said that his Ministry and the National Energy Regulation Commission will require regional electricity distribution companies to direct most of the CapEx towards the upgrade of their electricity networks. Concorde Capital: The main purpose of this network modernization blitz is to increase network capacity in order to allow greater electricity consumption by households and housing enterprises. This implicitly supports the idea (expressed in our note from January 25) that the state is going to support gas-to-electricity substitution, which will boost electricity consumption in Ukraine – benefiting generation and distribution companies.