OREANDA-NEWS. October 29, 2010. The National Electricity Regulatory Commission (NERC) raised the tariff of DNEN by UAH 284.5mn for period from Nov-2010 to Dec-2014 through increase in the investment component, the NERC representative announced Oct 29. The funds will go towards the modernization of Zaporizka’s TPP power unit #1 (300 MW). On a timeline basis, the Company should disburse UAH 11.3mn in 2010 and UAH 68.3mn each consecutive year through 2014.

Millennium Capital deems the news is POSITIVE for the Company. Millennium Capital believes these measures will improve the operational efficiency of the Company. Thanks to modernization the Zaporizka’s TPP power unit #1 will gain 15 MW of capacity, increase maneuverability by 27-36% and decrease equivalent fuel expenses by 8% (by 28.7 g/kWh). The power unit #1 has the highest capacity utilization factor amongst all of the DNEN’s power units (has the biggest work-out parameter).