Energoatom proposes to reduce the volume of PSO to 50%

NNEGC Energoatom said that 5% reduction in the volume of PSO imposed on the company would not bring a significant improvement in its financial condition.

Energoatom has repeatedly noted the distortion of the current PSO mechanism. Since the beginning of this year, Energoatom was supposed to supply 90%, and then 85% of the electricity produced at nuclear power plants at marginal prices (56.67 kopecks per kWh, excluding VAT) of SC Guaranteed Buyer, which, in turn, sells electricity to universal services suppliers in the volumes necessary to satisfy the needs of household consumers,” the report said.

Since January 2020, Guaranteed Buyer has financial problems that led to a violation of the payment terms for the energy of Energoatom in accordance with the agreement, and subsequently to the accumulation of debt to NNEGC, which now exceeded UAH 5 billion.

The company notes that 5% reduction in the volume of PSO will not lead to a significant improvement in the situation. According to the calculations of the company’s specialists, the reduction of PSO to 50% of the volume of electricity produced will solve the problem and will be enough to meet the needs of the population, while the company could sell the other 50% of electricity on the market of bilateral agreements, provided that NEURC will change the rules in the electricity market.

Recall, on May 20, the Cabinet of Ministers of Ukraine supported the proposal of the Ministry of Energy and Environmental Protection to reduce PSO volumes for Energoatom from 85% to 80% of the volume of electricity production at nuclear power plants with the possibility of selling 5% of electricity under direct agreements.

Tags: The Cabinet of Ministers, NPP, NNEGC "Energoatom", electricity, NEURC, The Minystry of Energy and Coal Mining, ETL, electricity market, Guaranteed buyer, debt, PSO, draft law, negotiations, price, agreement, volumes, The National Energy and Utilities the Natuonal Regulatory Commission, power system balance, infrastructure, electricity transmission, Shmyhal, population, nuclear power plant, balancing restrictions, power system, power unit, generation, crisis, Buslavets

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