Economy 2024-02-15T08:12:02+02:00
Ukrainian news
President Representative In Cabinet Herus: Cabinet Obliges Naftogaz To Sell Gas To DTEK Skhidenergo For UAH 2,

President Representative In Cabinet Herus: Cabinet Obliges Naftogaz To Sell Gas To DTEK Skhidenergo For UAH 2,895 Per 1,000 Cubic Meters

Cabinet of Ministers, President, gas, Naftogaz, Naftogaz of Ukraine, price, gas price, Andrii Herus, Volodymyr Zelenskyy, DTEK Skhidenergo

The representative of President Volodymyr Zelenskyy in the Cabinet of Ministers Andrii Herus stated that the Cabinet of Ministers obliged the Naftogaz of Ukraine National Joint-Stock Company to sell gas to the DTEK Skhidenergo energy-generating company for UAH 2,895 per 1,000 cubic meters (excluding VAT and transportation costs).

He wrote about this on his Facebook page, Ukrainian News Agency reports.

“Today, the Cabinet of Ministers obliged our company, that is, the Naftogaz state-run company, to sell gas to DTEK Skhidenergo at a price of UAH 2,895 per 1,000 cubic meters. That is, now the company owned by businessman Rinat Akhmetov will buy gas from the state-owned company about 40% cheaper than the price of gas for the population now," Herus wrote.

He noted that at the moment eight other TPPs belonging to the DTEK group sell their electricity more expensive than electricity in Slovakia or Belarus.

“DTEK now sells its coal at a price of about USD 100 per ton, although coal in Rotterdam costs USD 50 per ton. No one in the world can sell coal for USD 100, only DTEK on the “non-monopoly" market of Ukraine," he concluded.

As Ukrainian News Agency earlier reported, the National Anti-Corruption Bureau (NACB) prepared charge papers on former chairperson of the National Commission for State Regulation of Energy and Utilities, Dmytro Vovk, within the case upon alleged abuse of office by Energy Commission members during approving of the wholesale price of electric energy under the Rotterdam+.

Suspicions were also prepared on the top managers of the DTEK energy holding.

The new methodology that the National Commission for Regulation of Energy and Utility Services approved for calculating the projected wholesale price of electricity, which pegs the price of coal to the API2 index (better known the Rotterdam+ formula), came into effect on May 1, 2016.

This formula has stopped operation with the entry into force of the law on the electricity market from July 1.

Under this methodology, the price of coal is calculated on the basis of the indices at the ports of Amsterdam, Rotterdam, and Antwerp, with the cost of transporting coal from these ports to Ukraine added to this price.

Most of the coal that is used at Ukrainian thermal power plants is mined in Ukraine.

DTEK manages the energy assets of System Capital Management.

SCM is 100% owned by businessman Rinat Akhmetov.