Kovalchuk: Ukrenergo has the largest debt in its entire history

Due to the tariff crisis, Ukrenergo has formed a constant underpayment for the company's services. It has led the market to the highest level of receivables and payables than ever in the history of Ukrenergo.

Head of Ukrenergo Vsevolod Kovalchuk said this at a press conference on the preliminary results of 2019, Kosatka.Media reports.

According to him, the company received payment for transmission tariff services only by 92%. For dispatch services, customers paid only 77%.

“Thus, the debt accumulated of UAH 1.5 billion – the debt for transmission and dispatch services, according to the approved tariffs of last year”, said Kovalchuk.

He assured that the company is effectively managing this debt now, fulfilling all obligations. But the financial position of the company is significantly complicated. And he reminded that they predicted that this would happen.

“During my speeches addressed the National Energy and Utilities Regulatory Commission when approving tariffs in June 2019, I warned that, unfortunately, the decisions that are made will lead to deterioration in the financial stability of the system operator. Now we are balancing daily, having billions of dollars in both receivables and payables, which the company did not have before”, said Kovalchuk.

He expressed the hope that counterparties will make payments to Ukrenergo voluntarily. But he added that there is also a serious disputed amount, which is not yet a debt – as a result of lawsuits with ferroalloy plants, for UAH 423 million.

Thus, summarized Kovalchuk, Ukrenergo didn’t receive almost UAH 2 billion from counterparties in relation to the approved tariff structure in the second half of 2019, during the period of the new market’s operation. Also, the situation is complicated by the fact that the company for the first half of 2019 has an accumulated debt of UAH 623 million from SE Energorynok for services in the first half of the year.

Tags: tariffs, legislation, electricity, NEURC, Ukrenergo, electricity market

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