KYIV. July 15 (Interfax-Ukraine) – Ukraine’s National Commission for Energy, Housing and Utilities Services Regulation (NCER) has expanded the investment program of national energy company Ukrenergo by 45.6% or UAH 2.179 billion, to UAH 6.959 billion (VAT not included).
An Interfax-Ukraine correspondent has reported that the commission made the decision at a meeting on Tuesday.
Commission Head Dmytro Vovk said that the extension of the investment program would entail an increase in the electricity tariff for industrial consumers of within 1%, although in the medium-term outlook the tariff would be decreased thanks to work being completed.
Ukrenergo acting Director General Yuriy Kasich said that the increase of expenses in the 2015 investment program by UAH 2.179 billion is less than 35% of expenses foreseen in the draft development plan of the average annual needs of the company.
He said that the company plans to announce several tenders to buy equipment in the near future.
“Out of 36 electrical devices that are to be installed at facilities of trunk power line network, according to the proposed changes to the investment program, 19 units are new equipment to realize power line development programs [including one unit to be in reserve], eight units is the replacement of damaged equipment and nine units is the replacement of equipment in the unsatisfactory state,” he said.
Kasich said that thanks to the increase of expenses to replace equipment, Ukrenergo will be able to partially catch up with the losses of the previous years.
“The technical state of equipment of truck power lines and interstate power lines today are highly deteriorated. Around 70% of main equipment of power substations has operated for their life cycle of 25 years and requires urgent replacement. The further exploitation of equipment over their life cycle increases maintenance and repair expenses,” he said.
Ukrenergo operates mainland and inter-state power transmission lines, as well as centralized control of the national power grid. The company is state-owned and controlled by the Coal Ministry.
The National Commission for Energy, Housing and Utilities Services Regulation regulates the activity of monopoly entities in the fields of energy, heating supply, central water supply and drainage, oil and gas industries, solid waste treatment, and implements state price and tariff setting policies in these sectors.
