Reduced price caps are beneficial owners of energy-intensive businesses, but threatened the collapse of the power system of Ukraine – media

Снижение price caps выгодно собственникам энергоемких предприятий, но угрожает коллапсом энергосистеме Украины, - СМИ

Lobbying for reduction of price controls (price caps) in the electricity market in the interest of owners of large energy-intensive companies and threatens the energy collapse in the country in autumn

This is referred to in the material of the Internet-editions “Delo.ua” “Kolomoisky got a discount”, transfer Ukrainian news.

The article reports that on September 1, the electricity tariffs for non-domestic consumers fell by 21 kopecks/kWh or 10-11%, and is planned for October, another lowering of tariffs. This decision of the national Commission for state regulation in energy and utilities was preceded by protests of the workers of Ferroalloy and chemical enterprises of the group “Privat”, which required the reduction of tariffs and the decisions of the courts on claims of companies owned by Igor Kolomoisky.

“In July, the national Commission, carrying out state regulation in spheres of power and utilities, has reduced the tariff for transmission of electricity through main and interstate networks. From 1 August it amounted to 312,14 UAH/MWh, which is 10% less than the previous. And at the meeting on 30 August approved the draft resolution on regular reduction of the tariff “Ukrenergo” on September 1, 2019. 1 megawatt-hour “Ukrenergo” will obtain 116,54 UAH/MW-h. Thus, Ferrosplavy for which the price of electricity is a key factor in the profitability of your business succeeded”, — informs “Business”.

However, the new government continues to look for ways to further reduce the cost of electricity for large energy-intensive industrial consumers that are in private ownership. One option is the change in price caps (limiting the price of electricity) on vnutricletocnam the market — offered to raise the price of night caps within 10%, and day – to reduce by 20%. This will reduce the cost of electricity for industry by 9%.

According to the publication, this idea has caused bewilderment in representatives of generating companies and industry experts who emphasize that rgse caps is the maximum price the limiter covering the price of coal in 1714 UAH per ton. That is already below the prices of actual contracts to import coal from USA, South Africa and Colombia, fluctuating in the range of 1800-1900 UAH per ton. Reduction of price caps may soon lead to an energy collapse in the country, because the generating company would in fact be deprived of the opportunity to purchase coal.

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“Even greater reductions in price caps in favor of the owners of energy-intensive industries naturally lead to an energy collapse in the autumn”, — stated in the material edition “Business”.

We will remind, earlier energoekspert Dmitry marunich said that the tightening of price caps in the electricity market will lead to unprofitable work of TPP. A member of the Supervisory Board of the Institute of energy strategies Yuri Korolchuk expressed the view that it will provoke the growth of arrears of wages to the miners, because it means reducing the cost of coal in the tariff for thermal power plants.

The leadership of the “Donbassenergo” stated that a possible revision of price caps in the electricity market will lead to termination of Slavyanskaya TPP, and 15 thousand residents of the front of Nikolayevka will be left without heating.