Centerenergo accuses DTEK of blackmail

PJSC Centerenergo informs that on August 4, 2020, DTEK Dobropillyavuhillya sent a statement to the heads of trade unions of Donetsk region coal industry, in which it warns of the possibility of restoring mine downtime, placing full responsibility for the situation on PJSC Centerenergo. This is reported by the press service.

Centrenergo considers the actions of the DTEK holding regarding the state power generating company to be an open blackmail.

“The letter says about the alleged non-fulfillment by Centrenergo of the agreement with D.Trading LLC and non-payment for the allegedly delivered 35,000 tons of coal products in July”. It is noted that “the only consumer of fuel produced by Dobropillyavuhillya miners is Centrenergo,” the statement says.

Centrenergo officially declares that the volume of supplies in July amounted to only 26,357 tons of coal products, half of which were in the last days of the month. At the same time, the terms of the contract provided for the supply of 100,000 tons.

“Taking into account such weak dynamics and observing non-fulfillment of the terms of the contract by D.Trading LLC, Centrenergo was forced to receive coal from other suppliers, namely, state-owned mining enterprises. This circumstance undoubtedly imposed the obligation of first-priority payment for the received coal to the state mines on Centerenergo – the real suppliers of that period. Therefore, during July 2020, the state coal mines were paid UAH 236 million instead of the previously planned UAH 120 million. Centerenergo has already transferred UAH 13,172,000 to the accounts of D.Trading LLC. We also turned to DTEK's representatives with an official letter, where we confirm our intentions to fulfill the terms of the Agreement in terms of payment,” the company said.

The company also said that DTEK is currently in active negotiations with the State Property Fund of Ukraine to terminate the lease agreement for Dobropillyavuhillya mine.

As a reminder, on July 13, DTEK brought Dobropillyavuhillya coal mining enterprises out of idle time after signing a contract with Centerenergo for the supply of coal.

On July 14, DTEK Energy shipped the first 50 wagons with coal under the contract with Centrenergo.

Earlier it was reported that in July 2020, Centrenergo transferred over UAH 200 million to Ukrainian coal-mining enterprises.

Tags: The Cabinet of Ministers, DTEK, contracts, hydrocarbon production, coal mining, tariffs, legislation, electricity, NEURC, coal, energy market, TPP, electricity market, Centrenergo, debt, coal mining, monopoly, negotiations, price, agreement, route, volumes, power system balance, energy sector, electricity transmission, coal mine, population, generation, crisis, The Ministry of Energy, economy, market, electricity consumption, housing and public utilities, supplier, consumers

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