How to save Energoatom and Guaranteed Buyer

To get out of the vicious circle of “financial problems of Energoatom – PSO – deficit of Guaranteed Buyer” – it is necessary to stimulate the economy for its growth. Then the demand for electricity will increase, there will be more sales in any markets, and problems will decrease. Head of the energy sector of the Better Regulation Delivery Office Anton Zorkin said this in a comment for Kosatka.Media.

He explained that a government’s permission to reduce Energoatom’s PSO by an additional 5%, and permission to sell them on the bilateral contract market would not save the company. But in this process there is also a flip side – the more Energoatom’s electricity is brought to the free market, thereby reducing Guaranteed Buyer’s sales volume, the more deficit of Guaranteed Buyer increases.

“When buying cheap nuclear energy, Guaranteed Buyer sells it in regulated markets at a higher price. Due to this margin, it covers a feed-in tariff. Therefore, the smaller the amount of electricity it has, the less means to cover a feed-in tariff and the large debt of the state to “green” companies,” the expert explained.

Therefore, it would be better for Energoatom to sell more electricity on the market, because 5% will not save it, given that 3 units are stopped, and some work with restrictions.

“But if we are talking about an increase of up to 10%, 30% or 50%, we must consider and understand the ways to cover the deficit of Guaranteed Buyer,” Zorkin emphasized.

Recall that NNEGC Energoatom said that a 5% reduction in the volume of PSO would not bring a significant improvement in its financial condition, and suggested reducing the volume of PSO to 50%.

Tags: NNEGC "Energoatom", electricity, feed-in tariff, electricity market, Guaranteed buyer, debt, PSO, crisis

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