GenCos became hostages of the governments’ way of managing everything in the manual mode. A lot of campaigns seeking to help certain industries at the expense of the other industries led to an increase in the coal prices, while freezing the electricity tariffs, as the case is with GenCos. This fact and the plummeting electricity consumption caused by the current crises have led to the negative performance results of the GenCos. Despite a slight improvement of the situation in 4Q09, we do not expect any significant changes in the industry, unless the industry passes over to market economy operating conditions.

Vitaliy Khandeldy