13:50 22.01.2018

Ukrenergo seeks to switch to RAB tariffs from 2019

Ukrenergo seeks to switch to RAB tariffs from 2019

 National energy company Ukrenergo will initiate the transfer to Regulatory Asset Base (RAB) from 2019, the state-owned enterprise has said in a press release.

The press release recalled that the company is to appraise its assets and implement the investment program for the year preceding the switch to RAB by at least 95% for transfer to RAB tariffs.

Ukrenergo will focus on the implementation of the above-mentioned conditions and will initiate its switch to RAB in 2019 with the regulator.

"The introduction of RAB will allow Ukrenergo to operate more flexibly and play by the same rules with our European partners. One more desirable step for us from the regulator should be the transition to the approval of investment programs not for the coming year, but at least for the three or five years. This planning horizon will make the company more understandable for creditors, as the implementation of most projects is designed for several years" Ukrenergo Head Vsevolod Kovalchuk said.

As reported, on January 11, 2018, the decisions of the National Commission for Energy, Housing and Utilities Services Regulation (NCER), which are necessary to transfer Ukrenergo to RAB regulation, came into effect.

RAB regulation applies almost in each European country. It allows attracting investment into power lines and increasing the quality of servicing.

Ukrenergo operates trunk and interstate power grids, as well as performs the centralized dispatching of the united energy system in the country. The company is a state-owned enterprise. It is subordinate to the Ministry of Energy and Coal Industry.

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