Electricity tariffs for households rise by 15% as of April 1

The National Electricity Regulatory Committee increased electricity tariffs for households by 15% as of April 1, according to a decision approved yesterday. Another hike will be considered in the summer, according to committee head Serhiy Titenko. Yegor Samusenko: We estimate this April hike will allow for 1.8% growth in the wholesale electricity price, as household consumers account for only 26% of total consumption based on 2010 data. Though the immediate revenue and profitability impact from the hike will be immaterial (as we expect a total of 15% growth in the wholesale electricity price in 2010), the decision to raise household tariffs itself is notable, as they are 3-3.5x lower than tariffs for commercial customers and convergence is one of the long-term determinants of sector stability.