25 July 2008
Government To Introduce Equal Retail Electricity Tariffs In All The Regions. The Ukrainian Government will make equal tariffs for industrial electricity consumers from different regions. Currently, regional electricity distribution monopolies set individual tariffs in each region, thus the industrial electricity tariff in Kiev is 62-113% higher than the tariff in Ternopil region. According to the Minister of Fuel and Energy, equal tariffs will be set over ten months starting in August, and the changes in the tariff will be not more than 5% per month. Presently retail electricity tariffs for industrial consumers is higher in developed industrial regions, setting equal tariffs, according to the Cabinet, will create equal conditions for the enterprises in all the regions of Ukraine. Concorde Capital: The industrially developed regions of eastern Ukraine will suffer from this tariff rebalance, while the stagnate regions in western and central Ukraine will benefit from it. It is not clear whether regional distribution companies will be affected by such tariff changes. We expect the following tariff changes for industrial consumers:
Region Low-voltage consumers High-voltage consumers
Ternopil -12% -20%
Chernivtsi -12% -17%
Zakarpatia -11% -16%
Sumy -11% -13%
Kirovohrad -10% -22%
Cherkassy -10% -14%
Chernihiv -10% -13%
Kiev Region -9% -17%
Zhytomyr -9% -23%
Vinnitsa -9% -16%
Khmelnitski -9% -16%
Lviv -8% -13%
Ivano-Frankivsk -7% -16%
Crimea Rep -6% -9%
Kharkiv -6% -9%
Kherson -6% -17%
Odessa -6% -11%
Rivne -5% -15%
Mykolaiv -4% -4%
Volyn -3% -14%
Poltava -3% -11%
SevastopolCity -3% -9%
Luhansk -2% 9%
Donetsk* -2% +8% -3% +31%
Zaporizhia 3% 15%
Dnipropetrovsk 4% 12%
KievCity 48% 64%
* Tariffs in Donetsk region are different for different industrial consumers. They are lower for metallurgical plants and coal mines