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NERC considers reduction in electricity DisCos

NERC considers reduction in electricity DisCos

30 November 2011

The National Electricity Regulation Commission is going to revise its methodology of regulatory electricity losses in networks (i.e. losses that are compensated by distribution tariffs), NERC announced yesterday. According to Interfax, the regulatory losses might be decreased after methodology revision. Alexander Paraschiy:As the methodology of regulated losses is outdated, the actual losses in Oblenergo grids are about 8% below the regulatory levels. This allows Oblenergos to earn extra UAH 0.5 bln p.a. (or 1% of total domestic electricity market) from the difference between regulatory and actual power losses. Extra profits create a potential for the regulator to decrease the regulatory losses, which will be resulted in reduction of power tariffs for end-users by up to 1%. Naturally, this would be done at the costs of DisCos.

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