Government eyes vertically integrated structure for Centrenergo

Prime Minister Yulia Tymoshenko said yesterday at a press conference that within the next two weeks the Cabinet of Ministers will examine creating a vertically integrated state company including Centrenergo (CEEN) and state-owned coal enterprises Rovenkiantratsit and Sverdlovantratsit. Yegor Samusenko: In the long-term, creation of this holding could be beneficial for Centrenergo if the structure of the holding is clear and there is no transferring of profits between the entities. The two named state mining companies are among best in terms of cost efficiency, thus they are not as dependent on state subsidies as others are. Integration with coal mines would guarantee Centrenergo’s supply side in long-term, when its capacity utilization is expected to increase.