DTEK explains gas debt situation

DTEK has responded to a statement by the Ukrainian GTS Operator regarding unauthorized gas withdrawal and a debt of UAH 318 million.

DTEK identified a number of reasons that led to this situation. In particular, it is said that since July 2019, Luhansk TPP had been forced to switch to gas from Naftogaz of Ukraine in the face of a critical coal shortage that arose due to infrastructure and political problems in the region.

“However, the cost of electricity production on gas significantly exceeds the maximum electricity prices on the market. To save natural gas, from August 25 last year, DTEK Luhansk TPP was forced to switch to work as a single power unit”, the report said.

The company also talks about the lack of demand for domestic generation due to imported electricity, as well as the debt of SE Energorynok to DTEK Vostokenergo for electricity already sold, which amounted to almost UAH 1.9 billion.

Earlier it was reported that the GTS Operator of Ukraine reported that Luhansk TPP (part of DTEK-Vostokenergo LLC) had not had gas supplier since the beginning of February 2020 and carries out its unauthorized withdrawal from the GTS through the network of Luhanskgaz JSC. For the period from February 1, the volume of unpaid gas withdrawal in cash amounted to UAH 318 million.

To recap, in August 2019, Luhansk TPP switched to the operation of one power unit to reduce the use of natural gas.

At the end of September, DTEK Energy Holding sent a letter to Ukrenergo with information about the shutdown of Luhansk TPP, which is part of DTEK Vostokenergo, on October 1, 2019 due to the interruption of gas supplies, which DTEK takes away from the operator of Luhanskgaz gas distribution system without payment.

Tags: The Cabinet of Ministers, gas, DTEK, Naftogaz, contracts, Kobolyev, coal mining, tariffs, legislation, electricity, NEURC, EU, The Minystry of Energy and Coal Mining, Top management, coal, energy market, TPP, Ukrenergo, GTS, RF, electricity market, SOE Enerhorynok, debt, import, Gas market, monopoly, gas supplies, Makohon, OGTSU, energy sector, electricity transmission, transmission system operator, natural gas, gas imbalances, IPS, coal mine

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