Centrenergo sold electricity with a guarantee of supply for the heating season

PJSC Centrenergo sold baseload electricity with a delivery period from December 1 to March 31, 2022. Thus, for the first time in the Ukrainian market, buyers were able to purchase a resource under a forward contract for 6 months in advance, the press service reports.

The auction for the sale of electricity took place on August 31, 2021, at the Ukrainian Energy Exchange. The total volume of the sold resource is 286.879 MWh, with a total cost of UAH 502 million.

During the auction, the market price was set at the level of UAH 1750/MWh, excluding VAT.

PJSC Centrenergo became the first generating company in Ukraine to sell electricity with a delivery period in the first quarter of next year. Consequently, the price of electricity generated at the auction can serve as a price indicator for other sellers and buyers of the resource of the specified period.

“For a long time, the key indicator on the electricity market was the prices of short-term segments – the intraday market and the day-ahead market. The development of the market, the expansion of offers for buyers and the introduction of Centrenergo forward contracts allow the formation of indicators for future periods, which more accurately reflect the real cost of the resource. This will allow generating companies and consumers to plan their work without regard to constant price fluctuations inherent in short-term markets,” Volodymyr Halushchak, member of the Directorate of Centrenergo commented.

Tags: NEURC, coal, electricity market, Centrenergo, heating season, DAM, price, auctions, UEEX, intraday market

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