OREANDA-NEWS. May 27, 2010. National Electricity Regulatory Commission (NERC) has raised retail electricity tariffs for supplying companies in June. Thus for first voltage class consumers (over 35 kV) tariffs raised by 2.2% to UAH 0.5204 per kWh, and second voltage class consumers (less than 35 kV) – by 1.8% to UAH 0.6805 per kWh compared with May 2010.

Millennium Capital sees this news as positive. Millennium Capital links this decision of the Commission with the recent transmission tariffs increase for DisCos. Millennium Capital believes that such tariffs could keep the prices on the Energorynok (mediator between GenCos and DisCos) and thus avoid aggravating the financial situation of GenCos. However, to preclude losses for the generating companies, a more comprehensive reform is needed of the sector, providing GenCos with the power to change tariffs and choose suppliers on their own.