Winter preparations in Ukraine could fall through: an expert has outlined the reasons
This is reported by Oleksandr Trokhymets, Vice-President for Energy Affairs at the Ukrainian National Committee of the International Chamber of Commerce (ICC Ukraine).
According to him, the balancing market’s debt to NPC “Ukrenergo” stands at over 46 billion hryvnias and is only growing, whilst NPC “Ukrenergo” owes producers in the balancing market more than 32 billion hryvnias.
“We are heading for record lows that are damaging the stability of the power system,” writes Trokhymets.
In his view, the repayment of these debts is a necessary condition for the system’s stability, and this is in everyone’s interest – energy companies, industrial and domestic consumers alike.
He noted that the balancing market debts have been accumulated mainly by state and municipal bodies. Accordingly, they must be resolved as a priority by the state – on a par with the restoration of energy equipment and infrastructure damaged by the aggressor.
“Energy companies are doing everything they can to ensure Ukraine remains lit. If we can make everyone understand that electricity cannot be free, ensure payment discipline and implement management decisions, then we can, at the very least, halt the growth of debts. And then we can move towards fulfilling obligations and eliminating non-payment chains," the expert noted.
In his view, the Prime Minister, the relevant minister and the Regulator play a crucial role in this process of balancing market debts through their active involvement.
"Preparations for winter and the resolution of critical issues in the sector must take place now, so that the country does not find itself in a difficult situation when the cold weather sets in," concluded Trokhimets.
Debts in Ukraine’s energy market
Debts in Ukraine’s electricity market have reached critical levels and amount to around 70 billion hryvnias.
Volodymyr Omelchenko, Director of Energy Programmes at the Razumkov Centre, emphasised that the Ukrainian energy market is rapidly plunging into a debt crisis, which investors perceive as a sign of instability and unpredictability.
