KYIV, Apr. 13 – The planned privatization of Ukraine’s regional power supply companies, or oblenergos, plus updated methods for calculating energy supply tariffs, are likely to push energy prices up for Ukraine’s consumers, Forum Internet newspaper reported on Thursday.
The report says that in May, the new oblenergo shareholders will turn to the National Electricity Regulation Commission to suggest their own higher power supply tariff rates.
According to Credit Suisse First Boston, the international investment bank that advises the State Property Fund on the privatization of Ukraine’s regional power companies, potential investors are skeptical about their ability to earn profits from only industrial consumers, since the latter are large consumers of electricity.
CSFB says that large electricity consumers would be profitable for oblenergo owners if the they are kept under operation on a continual basis, which means giving them discount rates for the power they use.
Based on preliminary forecasts, electricity tariff rates for private consumers, following new calculation methods, will rise by 5-25 percent, depending on the region, power company’s debts and a number of other factors, the Forum report said.
