Energy and Coal Industry Minister of Ukraine accusing DTEK of monopoly

Energy and Coal Industry Minister of Ukraine Volodymyr Demchyshyn has accused DTEK of Rinat Akhmetov of running a monopoly.

"The possibility of loading Centrenergo's power plants [with coal from South Africa] today is the only way to fight against a monopolist like you – I officially say this," Demchyshyn said, addressing a DTEK representative at a meeting of the council of the wholesale electricity market in Kyiv on Friday.

The minister added that DTEK does not disclose its production cost of coal structure when the company submits reports to the National Commission of Ukraine for Energy, Housing and Utilities Services Regulation (NCER), while at the same time; the company demands an increase in tariffs for electricity generated by the company.

"No data during the past six months. A certain 'black box'…the cost per kilowatt-hour – we have them 40% higher than in other countries," he said.

Demchyshyn also spoke on the preparation of thermal power plants for winter.

"We provide UAH 1.5-2 billion for reconstruction, and then the plants are stopped in the middle of the heating season. And they have enough fuel to operate. I understand that there could be force-majeure, but not two units at four plants synchronously, while you're telling us that we're infringing your rights," he said.

He added that recently, payment discipline has considerably worsened in the energy market and that DTEK is involved.

The minister said that sharply poorer payments by DTEK Dniprooblenergo, DTEK Donetskoblenergo, Kyivenergo, Lvivoblenergo and Prykarpattiaoblenergo affected the market.

He said that in December 2014, payment debts owed to Energomarket were UAH 3 billion.

Source: Interfax-Ukraine