1Q12 power consumption edges higher

Total Ukrainian electricity consumption edged just 1.1% higher yoy in 1Q12, with households (+5.0% yoy) and non-industrial businesses (+7.2% yoy) driving the growth. Industrial consumers cut power use 1.1% yoy, mainly on a 3.8% yoy decline by the metallurgy sector. Transportation posted the largest decline in consumption (8.5% yoy).

Electricity consumption, 1Q12

———————————————
                                   TWh       yoy
———————————————
Industrial                     18.6    -1.1%
– metallurgy                 9.3    -3.8%
– other                         9.3     1.8%
Trasnportation              2.6    -8.5%
Other business             3.3     7.2%
Housing                       5.5     1.6%
Households                  12.1     5.0%
———————————————
Total                            42.0    1.1%
———————————————
Source: Ministry of Fuel and Energy of Ukraine

Vitaliy Vavryshchuk: Electricity consumption stats are a reflection of broader economic trends. The 4% decrease in metallurgy’s consumption implies a comparable decline in the sector’s output over the period. Consumption by transportation also saw a sizable drop, which we attribute mainly to disruptions in logistics due to the abnormally low temperatures in February. Additionally, lower gas transit volumes from Russia to Europe also impacted the weak data. Households, which added 5% yoy, remain the only significant driver for power demand, as well as for aggregate demand growth in the country.