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Head of Energoatom supports the Energy Community recommendations on the transition to financial PSO in electricity market

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22.05.2020

The Acting President of Energoatom Petro Kotin believes that it is imperative for the Government and the Ministry in charge to be receptive to recommendations of the Energy Community Secretariat. He stated that to the Interfax - Ukraine News Agency on 22 May, responding to the request for comments on the letter sent by the Director of the Energy Community Secretariat Janez Kopač to the Acting Minster of Energy and Environmental Protection of Ukraine Olga Buslavets, which appeared in mass media.

"Despite all problematic issues to be tackled during transition to the PSO financial mechanism, for Energoatom this primarily means that it will become an equal player in the market”, said Petro Kotin.

"The Energy Community is an expert in the energy sector. Its recommendations cannot be ignored. Moreover, it is necessary to take into account the USAID’ s recommendations on  further development of the electricity market, which are drawn on the experience of other European countries", added the Head of the Company.

Speaking out in favour of the transition to the PSO financial mechanism, he called the existing mode of market operations discriminatory against the nuclear sector.

"But right now, we have to operate in restricted mode. On the one side, we are restrained from entering into the market, on the other side, our volumes of electricity production have been substantially cut down”, said the Head of Energoatom.

In his opinion it means that economic recovery is carried out at the expense оf nuclear generation.

"As a result, the state will receive less taxes than due while the high-potential industry producing cheap and environmentally friendly electric power, which is one of the pillars of the national economy, will be in dire straits that we must not allow to happen under any circumstances”, - stressed Petro Kotin.

He pointed out that “opinions of Energoatom are neither listen to nor taken into account, and its problems are not understood in the Ministry of Energy and Environmental Protection”, attributing such situation to the lack of nuclear energy experts within the Ministry.  “But if the Community is not listen to, can anyone be surprised that we are not heard too?”, - concluded Petro Kotin.

Let us recall that Energoatom has already stated that the Governmental resolution about  5% decrease in the volume of public service obligations (PSO) imposed on the Company, would not result in significant improvements of its financial standing. (On 20 May the Cabinet of Ministers of Ukraine approved the motion of Ministry of Energy and Environmental Protection to reduce the volume of PSO for Energoatom from 85% to 80% of the volumes of electricity produced by NPPs, providing the possibility of selling 5% of electric power under direct contracts).