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NEURC accuses DTEK of exceeding 50% electricity sales limit on market between affiliated companies
KYIV. Aug 17 (Interfax-Ukraine) – The National Energy and Utilities Regulatory Commission of Ukraine (NEURC) will inspect the activities of JSC DTEK Dniproenergo, JSC DTEK Zakhidenergo, DTEK Skhidenergo LLC and D.Trading LLC in the period from March 1 to May 31, 2022 for a significant excess of the 50% limit on the sale of electricity under bilateral agreements between participants that are part of one vertically integrated entity or affiliated with each other.
The relevant decision was made by the commission at a meeting on August 16.
"By a memorandum dated June 13, 2022, the Energy Market Department informed the Licensing Control Department that 100% of the sales of electric energy by DTEK Dniproenergo, DTEK Zakhidenergo, DTEK Skhidenergo under bilateral agreements with D.Trading during March– May 2022 significantly exceeded the limit established by law (50%)," the regulator said in a rationale for the draft resolution.
In addition, according to NEURC, the weighted average selling prices of DTEK Dniproenergo, DTEK Zakhidenergo, DTEK Skhidenergo at electronic auctions on the Ukrainian Energy Exchange in April and May 2022 were lower than the weighted average prices of other producers and did not cover the cost of production electricity generating by DTEK companies. In turn, DTEK told Interfax-Ukraine that the company sells electricity at open and transparent auctions at the UEEX in accordance with the mandatory regulatory requirement to place volumes on the stock exchange.
"Any participant can come and buy volumes, while who exactly buys electricity is not displayed in the system. In fact, generation is deprived of the ability to control the fact of sale to one or another counterparty. After all, this would mean a violation of the exchange regulations. Therefore, in the realities of selling electricity on the UEEX site the limit is not appropriate," the press service said.
"DTEK hopes for a full and independent investigation by the regulator, taking into account these facts," the company said.
