Ukraine tariff hike

The Ukrainian government has bowed to IMF (International Monetary Fund) pressure and drawn up a resolution to increase electricity rates by 20 per cent. The move is a key IMF condition for loan disbursement to the country.

The move follows a recent decision in Ukraine`s constitutional court to overrule a moratorium imposed last year by the government on utility rate hikes. The rate rise will take effect from April 1, 1999.

A consortium of Siemens, Deutsche Babcock, Alstom Energy Systems and L&C Steinmuller is to carry out upgrading of Unit 8 of the Zmiev coal-fired power plant, increasing output by 55 MW to 325 MW.