Nasalik insists on gas supplies by Naftogaz at a special price for Luhansk TPP

Minister of Energy and Coal Mining Ihor Nasalik considers the supply of natural gas to Luhansk TPP (DTEK Vostokenergo) by Naftogaz of Ukraine at a special price the only way out to ensure the operation of the station. It is reported by EnergoReforma.

“The decision submitted by the Ministry of Energy and Coal Mining, I consider fair and necessary. Without its adoption, Luhansk TPP will not produce (electricity) in a month or a month and a half”, he said during a briefing in Kyiv on Wednesday.

He believes that if Luhansk TPP buys gas at a commercial price for its needs, then the cost of electricity produced will increase by 2.5 times and TPP will not be able to enter the “day-ahead market”.

“If it does not enter the market, then it will simply stop. The costs that the structure will bear are 100 million UAH per month. By phone call, or by any economic mechanisms, this issue cannot be resolved. It was necessary to make the decision that was proposed by the Ministry of Energy from the very beginning”, said the Head of the Ministry of Energy.

Recall that the Cabinet of Ministers ordered Naftogaz to sell gas for the needs of Luhansk TPP at a price of 2.895 UAH (excluding VAT, transmission and distribution tariffs) per 1 thousand cubic meters. But then it changed its mind and announced that it would initiate a decision on providing the subjects of generation of Luhansk region with energy sources without the use of regulated special prices.

Tags: The Cabinet of Ministers, gas, Naftogaz, contracts, Kobolyev, tariffs, legislation, electricity, NEURC, The Minystry of Energy and Coal Mining, TPP, electricity market

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