Monopoly in extraction: MP explains high coal cost in Ukraine.

Coal is twice as expensive as in Europe, legislator notes.

REUTERS

REUTERS

The cost of thermal coal for the needs of Ukrainian thermal power plants turns out to be one of the world's highest, says chair of the Verkhovna Rada Committee on energy and utilities, Andriy Gerus.

Energy generated by of Ukrainian TPPs is more expensive than that in the EU due to the monopolized market, the legislator told the Pravo na Vladu [Right to Power] panel show Thursday.

In Ukraine, 90% of coal is mined by a single company, DTEK, which is also a monopoly in the country's thermal energy market.

Read alsoUkrainian MP puts forward corruption allegations against acting energy minister

"The world is now seeing a reduction in the energy cost. For example, gas has dropped by 76% on year. As for coal, we have a situation where in Ukraine it costs about $70 per tonne, while in Rotterdam it costs about $35 per tonne. That is, in Ukraine it is twice as expensive. The reason for this, in my opinion, is really simple, a classic one. If someone wants to see what a monopoly is and how it works then this is the case. In our country, 90% of coal is mined by a single company, DTEK. Obviously, this is a monopoly. But it's not this that's so frightening – it's their terrifying abuse, which manifests itself in inappropriately high prices. And we see that in Ukraine has a price of $70, while in Europe it's $35. Apparently, here's where the abuse lies. Therefore, the answer to the question of why we have such a price, is because we have a monopolized market," Gerus explained.

As UNIAN reported earlier, MP Gerus also said that electricity tariffs for the households would not be revised in 2020.

Related news

Air France to resume regular flights to Ukraine

Initially, flights will be operated twice a week on Tuesdays and Fridays.

EU allocates over EUR 11.5 mln for public administration reform in Ukraine

In total, the EU has assigned EUR 90 million for 2016-2021 budget support for public administration reform.

Member of the Ukrzaliznytsya Supervisory Board stopped company tenders for scrap metal sales.

JSC Ukrzaliznytsya suspended the sale of scrap metal originated from decommissioned railcars. BusinessCensor got this information from market participants.

Operational plans of state-owned banks foresee cut of NPL in system to 32% by 2023 – NBU.

The operational three-year plans of state-owned banks to reduce non-performing loans (NPL), approved by the Financial Stability Council on June 30, provide for a reduction in NPL in the banking system from 51% to 32%, and in state-owned banks from...

Air France to resume flights to Ukraine in July

The French flag carrier Air France will resume direct regular flights to Ukraine from July 13, according to Avianews.

By continuing to browse World News (UAZMI), you acknowledge that you have read the Terms of Use and agree to the use of cookies