Kyivenergo: Kyiv Must Compensate for Losses

Kyivenergo (KIEN: BUY) declared its need for the city of Kyiv to compensate it for part of its losses due to low payment rates and new heating tariffs (passed by the Kyiv City Council), which are insufficient to cover its expenditures. According to the company’s press service, the compensation would allow Kyivenergo to pay for natural gas during the heating season, finance repair and operational work and guarantee reliable heating supplies. Alexander Paraschiy: According to amendments to the law on prices and pricing which came into effect this year, the local budget has to compensate any difference between the set heating tariffs and real cost of heat production. Earlier, Kyiv’s mayor said the city will be able to compensate the difference, as local budget income will allow it to do so.