OREANDA-NEWS. April 26, 2010. According to Mr. Omelyanovskyi, the President of the Energy Company of Ukraine, electrical power exports from Burshtyn TPP will be resumed by June 1, 2010.  Electricity exports were terminated due to the fact that the power station coal reserves were below minimum in March and April, but substitution of coal for natural gas would result in significant losses for Burshtyn TPP.

Millennium Capital sees this news as positive. Exports recovery means, first and foremost, the ability to sell electricity at commercial tariffs that are not regulated by the Government. Millennium Capital believes this move will significantly improve the financial results of Zakhidenergo <ZAEN UK BUY> this year. All thermal power generating company finished the first quarter of 2010, as well as the whole of 2009, with losses. The loss making operations of the electrical power generating companies have been caused by the moratorium on an increase of wholesale market electricity prices, which obligated the GenCos to sell electricity at prices that are lower than the generation cost. Also, it should also be pointed out that due to the coal shortages (the shortfall stands currently at app. 100,000 tons), NJSC ECU is expected to issue a resolution permitting GenCos to purchase coal from private companies.