DTEK demands a fair and public investigation into systemic manipulations in the electricity market by the NEURC

DTEK demands a fair and public investigation into systemic manipulations in the electricity market by the NEURC

DTEK29 May 2020

As an opponent of manual, unprofessional, administrative interference in the management of the industry, DTEK implores the NEURC to conduct a fair and public investigation into the systemic manipulations occurring in the electricity market, and take decisions to stabilize the energy sector in the interests of Ukraine, ensuring the country's energy security.

DTEK demands a fair and public investigation into systemic manipulations in the electricity market by the NEURC

The ongoing administrative interference in the market, unprofessional actions by the NEURC, which began in 2019, have had and continue to have a negative impact on the energy industry. A combination of artificial restrictions of electricity producers, non-market regulation and interference in the work of energy market has led to the largest energy crisis in the history of independent Ukraine.

DTEK has repeatedly articulated the need for the NEURC to respond to the current situation and take prompt measures to prevent manipulations in the electric energy market, which involves of filing market participants with applications for the sale of non-existent volumes of electricity. Such actions lead to the deliberate dumping of prices in order to obtain non-competitive advantages for individual market players at the expense of state-owned companies. For this reason, in May 2020, the volume of price bids, with a price of UAH 0,55 per kWh, which is lower than the cost of production of all generating companies, increased 16 times from 3 million kWh to 50 million kWh per day. The surplus of the proposed electricity and large-scale manipulations with the price and volume of bids for sale on the day-ahead market, with complete inaction on the part of NEURC, became the reasons for the artificial reduction in the price of electricity.

Manipulations on the day-ahead market, artificial prices for electricity led to the threat of disruption of uninterrupted supply of electricity for real consumers. In order to avoid a situation whereby a blackout occurs, electricity suppliers switched to purchasing electricity from real producers on the bilateral contract market, bypassing speculators and “air traders”.

DTEK, in its activities, is guided exclusively by market rules and rules established by NEURC, operates within the framework of Ukrainian legislation.

DTEK denies any allegations against it and demands that the NEURC fair and public investigation into the facts of systemic manipulations in the electricity market.

Profile

DТЕК is the largest private investor in Ukraine’s energy sector.

DTEK Group produces coal and natural gas, generates electricity at thermal, solar and wind power plants, distributes electricity, supplies electricity to end consumers, provides energy efficient solutions and develops a network of EV charging stations.
In 2019, DTEK’s capital investments totalled UAH 23 bln. Moreover, the company paid UAH 23.4 bln of taxes. DTEK employs 70 thousand people.

The company is 100% owned by SCM Limited. Ultimate beneficial owner – Rinat Akhmetov.

 

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