DTEK terminates agreement with Energoatom: what is the reason?
24 January 17:22
D.Trading (DTEK) is initiating the procedure for early termination of the agreement with Energoatom after the head of the parliamentary committee on energy and housing and communal services, Andriy Gerus, announced that about UAH 2 billion could be withdrawn from the state-owned company in favor of private traders, including D.Trading.
This is stated in the company’s announcement, as reported by "Komersant Ukrainian".
“D.Trading has officially appealed to the state-owned energy generating company Energoatom with a proposal to terminate further performance of mutual obligations under the agreement concluded following the results of the last auction, by mutual consent of the parties,” the company said.
It is noted that this decision was made in view of critical assessments by experts regarding the external circumstances and conditions in which the auction was held, which were beyond the company’s control. Therefore, D. Trading considers it appropriate to “initiate the procedure for early termination of the agreement with Energoatom, since the circumstances under which it was concluded have become the subject of public debate.
“Akhmetov’s company could have earned approximately UAH 400 million from this deal by the end of January, but after the final termination of the agreement, this will not happen. And Energoatom can quickly put the unsold volume of energy up for sale at market price,” wrote Yuriy Nikolov, editor of the publication “Our Money,” on Facebook.
At the same time, he raises the question of who will force Energoatom to terminate the remaining agreements “to sell electricity at a bargain price” (a total of 60 companies became electricity buyers).
“Akhmetov had a big score, but it was only 20% of the whole pie. There were “options” worth another UAH 1.5 billion that were distributed among the players. Unlike DTEK, no one is rushing to refuse them,” Nikolov wrote.
In his address to Prime Minister Yulia Svyrydenko, Gerus stated that Energoatom could lose about UAH 2 billion due to “blatant incompetence or corrupt interests” by selling a significant amount of electricity before the price caps (price restrictions) were raised.
According to Gerus, the idea of raising price caps had been discussed at closed meetings since January 8, which Energoatom’s management was aware of.
At the same time, on January 12-15, the National Commission for State Regulation of Energy and Public Utilities (NKREKP) publicly stated that prices would remain unchanged.
On January 14, Energoatom, without waiting for a decision on price revisions, held an auction and sold 2,100 MW of electricity at the old, lower prices.
However, according to the MP, on January 16, the NEURC suddenly raised the price cap by 82.5% to UAH 15,000 per MWh, in violation of procedures.
According to Gerus, the difference between the auction price and the new market price could result in Energoatom losing out on around UAH 2 billion, which could become profit for private traders.
