Energy commission head says assets of energy companies should be re-re-evaluated after they are included in the regulatory data base

Head of Ukraine's National Commission for Energy, Housing and Utilities Services Regulation Dmytro Vovk says assets of energy companies should be re-evaluated when they included in the regulatory asset base (RAB).

"Should re-evaluation be made when the system launches? Yes, this is the basis for the transfer. We need to define the cost of used assets. Moreover, many countries mark assets to the market every year," he wrote on his Facebook page.

He also said that the return rate for old and new assets should be equal.

"Return rates should reflect the capital value and be equal both for the old and new bases. It is preferable that it is revised on a regular basis, or at least the cost of state-owned stakes is lost. Attitudes toward government property (Ukrtransgaz where they have the single rate) and private property differs," he said..

Vovk said that the operation of energy companies could be optimized only with the introduction of RAB regulation and the switch to the Prozorro electronic procurement system in the sphere of electricity and gas transmission/transportation.