Cabinet recommends NERC increase Centrenergo's tariffs

The Cabinet of Ministers approved an order on November 11 that requested the National Electricity Regulatory Commission increase Centrenergo’s (CEEN) tariff rates in order to repay a loan taken from Ukreximbank in 1998. The loan was used to finance the reconstruction of the #8 power unit at the Zmiiv TPP. The tariff increase would boost Centrenergo’s investment allowance by UAH 28.2 mln in 2009, UAH 50.8 mln in 2010-2013 and UAH 25.4 mln in 2014. Yegor Samusenko: If the NERC implements the proposed action, it would have two positive effects for Centrenergo. First, the tariff increase would work as a direct subsidy for repaying the old loan. Second, it would open the door for a new EUR 150 mln loan from KfW for the modernization of unit#2 at the Trypillia TPP, announced in June. The new KfW loan agreement has been frozen due to uncertainties surrounding the company’s repayment of old debt.