Electrical storms (NKRECU)

It has been a long time since the blog wrote specifically about the NKRECU (National Commission for Energy Regulation and Utilities).  Indeed the last specific entry related to the concept of RAB (Regulatory Asset Based) tariff incentives for regional electricity providers, and pondering the benefits thereof should Ukraine pursue such a path – or not.

Suffice to say the RAB concept has yet to be adopted – but it has also yet to be dropped.

Clearly those involved in both the Ukrainian electricity and gas markets can see some serious benefits to adopting RAB if applying some creative asset accounting from the outset.  There are however potential political problems in allowing that to occur – which would undoubtedly be awkward should the concept go forward.  Thus RAB will continue to be a “subject of discussion” until politically expedient to introduce it.

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