Government may give 10% discount on power to industrial plants

18:02, 28 July 2006
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Starting from September 1

Cabinet of Ministers proposes starting from September 1, 2006 to provide 10% discount on energy power for powerful native plants, according to the press-office of the Cabinet of Ministers.

By its resolution the Government proposes to determine 10% discount at uniform retail tariff level on energy power for 1st and 2nd classes industrial plants with an average monthly energy consumption for technical requirements more than 50 million kWh per year.

In accordance with government decisions the NERC shall determine the mechanism of compensation of material losses for energy suppliers at regulated tariff of energy supply to industrial plants which have 10% discount.

The Ministry of Industrial Policy in consent with the Ministry of Economy and NERC will determine the order on granting a 10% discount.

The increase of wholesale market energy price from August 2005 to April 2006 by 19,8% has caused a uniform rise in retail tariffs. The negative impact has been made on the economy of plants with excessive energy consumption, metallurgical, in particular – in Dnipropetrovsk, Zaporizhya and Donetsk regions. This fact results at reduction in income and negatively affects the budget (gross revenue, taxes etc).

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