12:32 05.02.2018

Four regional electricity supply companies preparing for switch to RAB from April 1

2 min read
Four regional electricity supply companies preparing for switch to RAB from April 1

Electricity supply companies Chernihivoblenergo, Lvivoblenergo, Prykarpattiaoblenergo and Sumyoblenergo plan to switch to Regulatory Asset Base (RAB) from April 1, 2018.

According to postings on the website of the companies, they held public discussions required for the switch to RAB on January 29 through February 1.

Prykarpattiaoblenergo plans to increase investment by six times with the switch to RAB.

"With existing investments, the restoration of 0.4-10 kV power lines, which today are subject to reconstruction and replacement, will last 87 years, and with the introduction of incentive tariffs, the power lines that are in unsatisfactory condition will be rebuilt within 16 years," the company said.

According to the estimates of Prykarpattiaoblenergo, on average, every client of the company remains without power 7 minutes a day. After switching to RAB, by 2025 the company expects to reduce this indicator in towns by 60%, in villages by 75%.

Lvivoblenergo said that over 60% of the company's power lines require reconstruction and replacement, while annual funding for these activities is about 50% of the required sum.

"Thus, the underfunding of the Lvivoblenergo's power lines development program in 2012-2017 amounted to about UAH 400 million," the company said in a statement.

Sumyoblenergo expects to reduce the index of the average duration of breaks in power supply to consumers by 50% for the urban areas and 63% for the rural areas within eight years.

"The annual reduction of operational control costs by 1% is expected from 2019, which will reduce the company's share in the retail tariff for electric power. In addition, the use of indicators for the efficiency of technological costs of electricity will lead to a gradual decrease," the company said.

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