Oblenergos’ electricity transmission and supply tariffs to be raised on July 1

The National Electricity Regulatory Commission announced yesterday it will increase electricity transmission and supply tariffs for Oblenergos by 4%-60% since July 1. The reason for tariff growth is to raise salaries at electricity distribution companies by 32.5% to decrease current workforce turnover. Alexander Paraschiy: Workforce expenses of some privately controlled Oblenergos, including Prykarpatoblenergo (PREN: HOLD), Ternopiloblenergo (TOEN: U/R), Poltavaoblenergo (POON: SELL), are above the level foreseen in their tariff structure. The increase in tariffs will allow them to eliminate this downside pressure on their profits.