Government Plans to Oblige Energoatom to Sell 90% Electricity for Regulated Price

On the 12th of June 2019 the Cabinet of Ministers of Ukraine plans to change the Resolution dated June 5, 2019 about public service obligations (PSO) introduction in order to oblige NNEC Energoatom to sell 90% (not 60%) its electricity for state regulated price.

The Representative of the President in the government Andriy Gerus informed about it at the governmental meeting.

“As I understand today the government will amend the Resolution on PSO again. I want to pay attention to the version according to which it is proposed Energoatom to sell 90% its electricity for fixed price to SE Guaranteed Offtaker”, said Gerus and added that the decision won’t promote the competitive electricity market construction.

“We have two the largest companies on the back of absence of possibility to import energy into united Ukrainian energy system. Under the circumstances these companies would be able to provide some sort of competition. But if one company oblige to sell 90% its electricity for fixed price and not to take part in the competitive market, the other company will leave without any competitor. It will be free liberalized market for one company”, specified Gerus.

There was no possibility to hear the Prime Minister Volodymyr Groysman’s comment as the translation of the Cabinet meeting had ended.

As ExPro reported, earlier the Cabinet of Ministers adopted the PSO mechanism for electricity market. This mechanism is aimed to maintain the current level of prices for people. According to it, Energoatom will be to sell its electricity for regulated prices to suppliers (Guaranteed Offtaker including). Thus population will receive electricity for the prices lower than the market level. The National Energy and Utility Regulation Commission announced that adopted PSO mechanism could lead to the extra financial pressure on business and budget sector at the rate of 37 billion hryvhyas a year.

13:15 / 12 June, 2019

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