Energoatom accepts the need for fixed prices for electricity: Corporate
December 31, 2020
Ukrainian nuclear power plant operator Energoatom says it understands the urgent decision taken by the Cabinet of Ministers on December 28 to expand regulations governing the electricity market. One of these regulations is to set a low price for electricity sold to the Guaranteed Buyer under the Public Service Obligation (PSO) mechanism.
The extension is about “assigning special duties” to OSP participants to ensure that they are operating in the public interest, Energoatom said on December 29.
“We understand the reasons for this urgent decision, as there was a high risk of a sharp increase in electricity prices for domestic consumers from the start of next year,” Energoatom said.
“Even if the guaranteed buyer pays for all of the electricity supplied, we expect a negative financial result, a cash deficit in the first quarter of 2021 of UAH 4 billion, and therefore a halving of the payments of taxes by the company for budgets of all levels.At the same time, we understand that due to imbalances in the electricity market, the guaranteed buyer will not be able to pay for electricity on time, which means an accumulation of debts to the company. “
Energoatom said it has already approached the government, relevant ministries and agencies with proposals to resolve these issues and “actively participate in the development of a best scenario for the financial equilibrium of the electricity market in 2021” in order to allow Energoatom to break even.
Energoatom operates Ukraine’s four nuclear power plants – Zaporozhe, Rovno, Southern Ukraine and Khmelnitsky – which include 15 units.
Research and writing by World Nuclear News