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Posted On

12
October
2021

Centrenergo to receive funds for purchase of coal due to primary debt repayment in balancing market – Energy Ministry

KYIV. Oct 12 (Energy Reform) – PJSC Centrenergo will receive funds for the purchase of fuel due to the primary repayment of debts by NPC Ukrenergo to it in the balancing market, the right of claim to which in favor of the thermal generating company will be surrendered to Energoatom and PrJSC Ukrhydroenergo, First Deputy Energy Minister Yuriy Vlasenko has said.

"A joint decision was made with Energoatom, Ukrhydroenergo, the NEURC and Ukrenergo to improve the situation with settlements in the balancing market in relation to Centrenergo. There is a protocol decision according to which Energoatom and Ukrhydroenergo cede the queue requirements of the balancing market funds, so that we have the opportunity to provide funds specifically for Centrenergo for the purchase of coal," he told Energy Reform on the sidelines of the conference "Ukraine’s Integration into ENTSO-E: Step Towards Energy Independence" in Kyiv on Monday.

According to Vlasenko, we are talking about the funds that market participants should have received for working in the balancing market in December 2020 and January-February 2021.

"The money will come first to Centrenergo, and as soon as it is settled, Ukrenergo will resume its payment schedule in the balancing market, settlements for which take place nine months after the operation," the first deputy minister explained.

He specified that the funds saved by Ukrenergo in the market of ancillary services in the amount of about UAH 700 million, which the energy regulator NEURC allowed to transfer to settlements in the balancing market, will also be spent on payments to Centrenergo.

"And this amount and the additional amount collected from market participants will enable Centrenergo to replenish its circulating assets," Vlasenko said.

According to Ukrenergo Board Chairman Volodymyr Kudrytsky, who also commented on this issue, if some participants in the balancing market express a desire to give way to another because it needs to solve urgent problems, this can be done, but only on a voluntary basis. "No balancing market participant who has not expressed a desire to concede his turn will not be affected by this initiative. Everyone will receive their usual payment from the balancing market, distributed proportionally," he stressed.

As for the state of accumulation of coal, the first deputy minister noted that "we expect to be on schedule in the near future." At the same time, he expressed regret that the actual supplies of imported coal do not correspond to the schedules provided to the ministry by generating companies.

He noted that, judging by the applications of the generating companies, Poland and Kazakhstan will become the largest coal exporters to Ukraine.

At the same time, Vlasenko indicated that he did not see technical problems with coal supplies. "We are holding online meetings with representatives of coal mining enterprises and thermal power plants, in which representatives of Ukrzaliznytsia also participate. According to the results of two conference calls, there are no problems with coal transportation. The only problem is that the coal enterprises themselves delay the cars during loading, and in this regard, sometimes there is a shortage, but the situation with the cars is stable," the first deputy Energy Minister said.