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PSO mechanism must be fair and balanced – Energoatom’s Vice-President Hartmut Jacob

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NNEGC «Energoatom», as the largest energy generating company in Ukraine, continues to fulfill service obligations imposed on it by the state to provide the public with affordable electricity (PSO) faithfully and hopes to implement an updated PSO model in the short run, which will be more financially balanced and fair.

This was stated by the Vice-President of NNEGC, Acting Director of Energoatom-Trading Hartmut Jacob, presenting the Company's performance in the new market at the Ukrainian Energy Forum hosted by the Adam Smith Institute.

Mr. Jacob said that Energoatom currently sells about 50-55% of electricity under PSO for 15 kopecks/kWh. Starting from July 1, 2019, when the new electricity market started operating, NNEGC supplied 100 billion kWh to the public.

He explained that to compensate for the cost of electricity supplied by the Company under the PSO, it must make efficient sales that would cover the costs of producing all electricity and allow Energoatom to make a profit and pay dividends to the State budget.

 «That is why it is extremely important for NNEGC to work in a stable projected electricity market without abuses and manipulations, from which all generations suffer losses. The situation is complicated by the astronomical debt to Energoatom, which currently exceeds UAH 20.7 billion,» Hartmut Jacob stressed.

He added: the Company welcomes the recently adopted amendments to the legislation as well as the decision of the Regulator and the Auction Committee of the Ministry of Energy to increase the requirements for participants in the electricity market and eliminate manipulation in it. We hope that the work on arranging the electricity market along with the decision of the National Energy and Utilities Regulatory Commission of Ukraine to strengthen regulation will balance the day-ahead market, which will allow all its participants to trade effectively in it.