Energoatom’s Seales Will Trigger Development of Bilateral Agreements Market – TAS Energy of Country
The releasing of electricity volume produced by NPPs (40% of Energoatom’s output) for its selling in the bilateral agreements market will take positive effect on the company’s liquidity and will trigger development of direct contracts market featuring the forecasting price for end-use consumers.
The Director of trader TAS Energy of Country Maxym Dmytruk expressed his opinion, commenting the increasing of Energoatom sales at Ukrainian Energy Exchange.
“It will allow to distance from the day-ahead market as an indicator. In Europe the DAM is a subsidiary and speculative market not being the indicator for end-use consumers. The customer should have possibility of planning the business when he clearly identifies the electricity value for year ahead… I suggest the long-term agreements are the perspective for all companies like Energoatom, Ukrhydroenergo, Centrenergo and others,” he said.
According to Dmytruk, futures and long-term contracts should be widely used as they let raise funds due to fixed prices for a long time. The usage of long-term agreements will allow Energoatom to get earning for piling up its liquidity.
“Energoatom should have supplemented its offers with futures and yearly contracts, thus the company identifies its margin and has a guaranteed buyer. A trader purchases this contract and offers it to an end-use consumer, the latest gets possibility of estimating the self-cost of his goods,” explained the Director of trading company.
Dmytruk assessed the increasing of the nuclear power free sale as a positive step for Energoatom, traders, consumers, and lenders as well.
“If Energoatom constructs its sales strategy correctly, it will allow the company to get maximal cash flow and to develop,” added the Director of TAS Energy of Country.