Another Reform of Zelensky and His Servants Was Crashed Down. The Electricity Market Is Closing

Medunytsya Oleg

Expert on budget and decentralization. Member of the Verkhovna Rada Committee on Budget of the 7th-8th convocations. He participated in the development and implementation of budget reform, administrative-territorial reform and…

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05 May 2021

At the request of the Ministry of Energy, the Government adopted Resolution No. 439, which amended the Regulations on the imposition of special obligations on participants in the electricity market to ensure the public interest in the functioning of the electricity market.

The new rules stipulate that the state-owned companies Energoatom and Ukrhydroenergo will sell electricity directly to universal service providers under bilateral agreements, without an intermediary in the form of SE Guaranteed Buyer, but at a fixed price and in the volumes required by suppliers.

Thus, the government’s decision stipulates that payments to Energoatom and Ukrhydroenergo for electricity consumed by household consumers will be made on a final basis - after payment of all tariffs: for transmission, distribution and supply. If, as a result of dividing the cash balance by the amount of electricity consumed by the population, individual suppliers have a result of less than UAH 10 per 1 MWh, NNEGC Energoatom and PJSC Ukrhydroenergo must reimburse such suppliers for cash costs.

The state generations were blown away by such anti-market decision. And instead of obediently fulfilling the will of their shareholder, represented by the Government of Ukraine, they even issued statements of indignation, which will most likely not change anything.

In this way, Zelensky wants to keep electricity prices for the population, but only at the expense of the state generation, significantly worsening their condition. Both companies already suffer from debts from NEC Ukrenergo, but it seems that Zelenky’s authorities absolutely do not care.