A quarter of the amount will be distributed between Tsenterenerho PJSC (294.40 million hryvnia) and Donbasenerho PJSC (225.79 million hryvnia).
The lion’s share of funds - 1.48 million hryvnia - will be allocated to DTEK Dniproenerho PJSC (374.91 million hryvnia), DTEK Zakhidenerho PJSC (744.63 million hryvnia), DTEK Skhidenerho PJSC (360.26 million hryvnia) owned by Rinat Akhmetov. The funds are intended for covering the debts to TPPs that accumulated before Sept. 1, 2017 while they could only be spent for future coal supplies. To implement this decision, Enerhorynok SE already received a 2-billion hryvnia loan from Oshchadbank in November.
According to Nashi Hroshi, NEURC must approve the relevant algorithm for transferring funds to the wholesale electricity suppliers and make changes to the estimates of Enerhorynok State Enterprise for 2018 in order to launch this scheme.
In very simplified terms, the algorithm looks as follows: all the Enerhorynok’s money intended for debt repayment should be distributed among producers in the following proportion: the TPPs get approximately 50 percent, 40 percent goes to Enerhoatom, the remaining 10 percent is distributed among Ukrhydroenerho, Ukrenerho, Central Heating and Power Plants and the renewable energy producers. The oldest debts to energy producers are covered first. The new scheme envisages that all the money will be transferred to the thermal power producers, which means that debts to Enerhoatom and all the rest will not be repaid.
The regulatory authority says the decision was taken in order to implement the government resolution No. 776-p of Oct. 18, 2017 on the measures to stabilize operation of energy generating companies operating the thermal power plants.
Rinat Akhmetov’s DTEK Group produces about 80 percent of thermal energy. The company also produced 84 percent of all Ukraine’s thermal coal over 11 months of 2017.
The coal price in Ukraine based on the price in Rotterdam, delivery and transshipment expenditures has been included into the price of generated electricity since April 2016 which triggered an upsurge in tariffs for TPPs.
DTEK’s Eurobonds gained 40 percent of their value after the introduction of the "Rotterdam" formula. When the Eurobonds were cheaper, they were bought up by ICU, the company acting as President Petro Poroshenko’s financial adviser and co-owned by former Energy Minister Volodymyr Demchyshyn. The now Chairman of the NEURC Dmytro Vovk also previously occupied a post in this company.