Economy 2021-07-15T07:43:16+03:00
Ukrainian news
DTEK Challenges Cabinet's Resolution On Emergency Measures In Energy Sector

DTEK Challenges Cabinet's Resolution On Emergency Measures In Energy Sector

court, Cabinet of Ministers, Lawsuit, energy sector, DTEK, emergency measures, DTEK Zakhidenergo

The DTEK Zakhidenergo has lodged a lawsuit at the Kyiv District Administrative Court on termination of resolution No. 409 of the Cabinet of Ministers of Ukraine June 14 on prolongation of the emergency measures in the energy sector.

The press service of the DTEK Energy announced this to Ukrainian News Agency.

The lawsuit was registered on July 10.

The state of emergency in the energy sector was introduced by the Cabinet of Ministers on February 17, 2017. It has been prolonged by resolutions of the Cabinet of Ministers of March 16, April 12, May 11, and June 14.

The company complains of tariff discrimination of operating thermal power plants, as 30% of funds meant for all thermal power plants in Ukraine is used to support certain thermal power plants suspended because of deficit of anthracite coal.

In particular, the tariff of Donbasenergo for June made UAH 359/kWh while the tariff of DTEK Zakhidenergo was UAH 1.24/kWh.

The tariff of DTEK Zakhidenergo in April - June 2017 did not cover the prime cost of electricity.

The DTEK Energy says the tariff of the thermal power plants of DTEK Zakhidenergo is disrupting preparations of the company for the next heating season.

In addition, the resolution of the Cabinet of Ministers of June 14 violates the law on the electricity market of April 13. The law took effect on June 11. The law does not entitle the Cabinet of Ministers to introduce emergency measures in the energy sector of Ukraine.

As Ukrainian News Agency earlier reported, the state of emergency in the energy sector has been in place since February 17, 2017, imposed after full halt of shipment of anthracite coal from the territories of Donetsk and Luhansk regions currently beyond the control by the Government of Ukraine.

The state of emergency in the energy sector means to end-users possible (if necessary) temporary blackouts (so-called rolling blackouts) that the central controller of the power grid system is authorized to allow in case of power deficit in the system.

From the commercial point of view, the emergency means that the energy system is hand-controlled and price bids for power generation will not be accepted.

On the other hand, the state of emergency grants greater authorities to the Ukrenergo national energy company, the central controller of the power grid system, who thus has received the right to hand-manage power output of each thermal power plant.

These measures are intended to reduce consumption of anthracite coal, deliveries of which to thermal power plants stopped on February 13 a result of the blocking of railway traffic across the line of contact.

The DTEK Zakhidenergo power company operates the Burshtyn (Ivano-Frankivsk region), Dobrotvir (Lviv region), and Ladyzhyn thermal power plants (Vinnytsia region).

DTEK manages the energy assets of the System Capital Management company.

Businessman Rinat Akhmetov owns 100% of the shares in System Capital Management.


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