The electricity market launched in Ukraine is not really a market. That is why the energy sector in our country is in crisis.
This opinion was expressed by candidate of economic sciences, independent expert Oleksandr Khmelevskyi, commenting on the statement of DTEK on the shutdown of coal mines in the comment for Kosatka.Media.
“The introduction of the so-called electricity market led to the crisis in the energy sector. In fact, this is not a market. This reform allowed intermediary companies to buy cheap electricity from nuclear power plants and resell it much more expensive”, he said.
The expert explained: due to such speculation, the cost of electricity has increased significantly. The electricity tariff has been increased for enterprises. Finding themselves in a difficult situation, entrepreneurs lobbied for permission to import electricity from Russia and Belarus. This allowed to reduce tariffs, but caused damage to the energy sector. Our power plants are forced to stop their work because of the import of electricity.
“NPC Ukrenergo regulates energy in a manual mode, artificially reduces production volumes for the sake of import. The reduction in electricity demand led to a reduction in demand for Ukrainian coal. For more than six months, the coal industry has been in a crisis. This applies not only to DTEK enterprises, but also to other enterprises. Miners have not been paid wages for months”, Khmelevskyi noted.
He added that DTEK had already defaulted on loans and Eurobonds. The bankruptcy of energy companies and the collapse of the entire Ukrainian energy system are not ruled out.
“There is only one way out: the abolition of the so-called electricity market and the ban on imports. This will save the industry. However, one must act quickly. Otherwise, blackout awaits the whole of Ukraine”, the expert believes.
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