Prykarpatoblenergo's supply tariffs increase 35%

The National Electricity Regulatory Commission announced yesterday that it had raised electricity supply tariffs for Prykarpatoblenergo(PREN: HOLD) effective June 1, 2008. Supply tariffs grew by 35.03% to UAH 7.98(USD 1.6)/MWh for I-class customers (large industrial or high-voltage enterprises) and by 35.15% to UAH 39.91(USD 8.2)/MWh for all other consumers. Alexander Paraschiy: The increase in Prykarpatoblenergo’s supply tariffs is related to the departure of its main customer, LukOR (refer to our note of Nov. 27, 2007), which made up about 30% of the company’s customer base.As we forecasted, the company is currently compensating for the loss of its main client by a 35% increase in supply tariffs – to head off a decrease in its bottom line.