Tymoshenko To Lower Electricity Tariffs For ZALK

Prime Minister Yulia Tymoshenko ordered the National Electricity Regulation Committee (NERC) to change Zaporizhzhya Aluminum Mill (ZALK: Hold) from a ?Class 2? electricity consumer to a ?Class 1? consumer. Class 1 consumers receive high-voltage electricity (above 27.5 kV), while Class 2 consumers buy low voltage electricity (below 27.5 kV). To decrease voltage, transformers are used, which makes low voltage electricity more expensive. Concorde Capital: Class 2 tariffs were USD 0.035 per 1KWh for ZALK, well above the price global aluminum players pay for electricity. This put the company on the brink of closure. Transferring the company to Class 1 status will allow ZALK to reduce electricity costs significantly, and return to normal business operations.