NEURC intends to pay off debts to Akhmetov's DTEK rather than to Energoatom

UNIAN 2

Ukraine's National Energy and Utilities Regulation Commission (NEURC) will decide at a January 9 meeting on the allocation of UAH 2 billion for power generating companies of thermal power plants (TPPs), as reported by the investigative journalism portal Nashi Hroshi (literally "Our Money").

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A quarter of the sum will be distributed between Ukraine's major power generating company PJSC Centrenergo (UAH 294.40 million) and PJSC Donbasenergo (UAH 225.79 million), Nashi Hroshi wrote.

The major part (UAH 1.48 billion) will be forwarded to Rinat Akhmetov's PJSC DTEK Dniproenergo (UAH 374.91 million), PJSC DTEK Zakhidenergo (UAH 744.63 million), and DTEK Skhidenergo (UAH 360.26 million).

The funds are intended to cover the repayment of arrears to TPPs, accumulated before September 1, 2017, with further transfer of money solely for payments under coal supply contracts.

Read alsoYear of gas "wins" and energy "fails"To this end, the state-owned enterprise Energorynok took out a loan of UAH 2.00 billion in Oschadbank in November 2017.

To launch the scheme, the NEURC is to take two decisions: on the algorithm for transferring funds from a current special use account of wholesale electricity supplier and on making changes to the SE Energorynok's estimates for 2018.

They are required to avoid the implementation of the law on electricity, which defines the algorithm for allocating funds to the energy market to repay debts to electricity producers.

"In its simplified form, the algorithm is as follows – all money from Energorynk for debt repayment should be distributed among producers in the following proportion: about 50% is taken by TPPs, 40% by Energoatom, and the remaining 10% is divided between Ukrhydroenergo, Ukrenergo, CPPs [combined heat and power plants] and producers of "green" energy. First, they redeem old debts to electricity producers, Nashi Groshi said.

Read alsoFT: Ukraine's Rinat Akhmetov has $820m of assets frozen"In turn, the planned scheme assumes that all money will be received by the thermal power sector, that is, Energoatom and others will get nothing to pay off their debts," it added.

NEURC notes its decision is taken to implement the Cabinet of Ministers' decision No. 776-r of October 18, 2017 on measures to stabilize operations of power generating companies of thermal power plants.