Ukraine electricity export auctions pushed back to February

Electricity export auctions will take place no sooner than February 2010, Kommersant reported this morning, due to a ban imposed by a Kyiv court. A December 11 court decision forbids Ukrinterenergo, Ukraine’s international electricity trader, from foreign activities until February 2 when the court is due to decide on the legality of the legal framework allowing electricity exports from Ukraine. The first electricity export auction was scheduled to be held today. Yegor Samusenko: While electricity export liberalization is critical for Zakhidenergo (ZAEN, the only electricity producer connected to UCTE) to earn more on export contracts, a two month delay would not have any effect on Zakhidenergo. The main benefit for Zakhidenergo is expected when direct electricity contracts are allowed between producer and consumer, thus allowing Zakhidenergo to charge higher prices for exported electricity, which we expect to happen in late 2010-2011.