AMCU fined some participants in the energy market due to violation of the law

The Antimonopoly Committee of Ukraine recognized the Ministry of Energy and Coal and certain participants in the thermal coal market as violators of competition laws, according to the AMCU website.

According to the Сommittee, some participants in the thermal coal market, on the recommendation of the Ministry of Energy and Coal Industry, simultaneously raised prices in 2016-2019.

“During the investigation of the cases by the Committee, it was found that the Ministry recommended that state-owned enterprises raise the ceiling level of the price of one coal product for the needs of thermal power plants and combined heat power plants to the appropriate level. This is confirmed by the minutes of the meetings on the determination of the marginal price for coal. At the same time, the meetings were also attended by representatives of private companies – suppliers and consumers of thermal coal,” the message says.

Business entities – meeting participants supplied more than 80% of all thermal coal for the needs of TPPs and CHPPs. The same meetings were also attended by electricity producers (TPPs and CHPPs), which consume more than 95% of all thermal coal used for the needs of this industry.

It is noted that the Ministry of Energy and Coal did not have the authority to recommend the level of ceiling prices, since the sale of thermal coal is carried out on market conditions.

Analysis of weighted average base prices also shows that in the period from August 2016 to June 2019, DTEK Dniproenergo, DTEK Zakhidenergo, DTEK Skhidenergo, Cherkasy Khimvolokno and Centrenergo bought thermal coal at base prices similar to the marginal prices determined at the meetings in the Ministry of Energy and Coal.

When considering the case, the Committee analyzed the cost of coal mining, its prices in accordance with exchange quotations, currency fluctuations and tax burden. The correlation of these factors with the prices determined at the meetings in the Ministry of Energy and Coal refutes the existence of objective reasons for such similar actions.

Therefore, the AMCU decided to impose fines on the following enterprises:

State Enterprise Hosuhlesnab – UAH 2.29 million;

  • DTEK Trading LLC – UAH 163.44 million;
  • DTEK Dniproenergo JSC – UAH 125.47 million;
  • DTEK Zakhidenergo JSC – UAH 172.97 million.
  • DTEK Skhidenergo LLC – UAH 91.05 million;
  • PJSC Centrenergo – UAH 205.84 million;
  • CJSC Cherkasy Khimvolokno – UAH 14.42 million.

Tags: DTEK, coal mining, legislation, electricity, TPP, AMCU, Centrenergo, CHP, price, The Ministry of Energy, economy

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