Electricity Tariffs For ZALK To Be Reduced?

Zaporizhzhya oblast governor Yuriy Artemenko will ask the Cabinet to switch Zaporizhzhya Aluminum Mill (ZALK: Hold) back to ?first class? electricity tariffs. Previously, the company paid electricity tariffs pegged to aluminum market prices. The special tariff arrangement according to which electricity tariffs for ZALK were pegged to aluminum market prices was cancelled earlier this year. At the same time, the company was transferred from first class tariffs to second class tariffs. Concorde Capital: First class tariff payers save 20-50% on electricity costs, depending on the season. We anticipate that the shift to first class tariffs will allow ZALK bring its operations back to normal.