ДТЭК
DTEK Energy mines temporarily suspended operations at DTEK Dobropilliacoal, DTEK Bilozerska Mine and DTEK Zhovtneva CPP due to systemic crisis in the Ukrainian energy sector

DTEK Energy mines temporarily suspended operations at DTEK Dobropilliacoal, DTEK Bilozerska Mine and DTEK Zhovtneva CPP due to systemic crisis in the Ukrainian energy sector

Power distribution27 March 2020

DTEK Dobropilliacoal, DTEK Bilozerska Mine and DTEK Zhovtneva CPP will suspend production and preparatory work ahead of mining, as well as the enrichment of coal, from April 1, 2020. The decision was taken due to the systemic crisis in the energy sector of Ukraine; the ongoing importation of electricity and coal; and the regular intervention by politicians in the market, which collectively led to the lack of demand for Ukrainian coal. Staff will receive payment in alignment with the collective agreement. During downtime, maintenance of mines and factories will continue, which will allow for the prompt restoration of enterprises.

A systemic crisis in the energy sector of Ukraine, provoked by manual regulation of the energy market; the uncontrolled importation of electricity from Russia and Belarus; as well as the lack of industry coordination by the Ministry of Energy, has led to an imbalance in the Ukrainian energy system and the impossibility of stable operation for coal enterprises.

DTEK Energy repeatedly appealed to the system operator NPC Ukrenergo with a request to cease the practice of forcibly stopping power units of TPPs. Despite the existence of contracts for the production of electricity, NPC Ukrenergo systematically reduces the production of electricity at DTEK Energy TPPs to one electrical power unit, which threatens the stable operation of TPPs and significantly reduces the amount of coal consumed.

Due to the impossibility of further coal handling to TPPs, from April 1, 2020, about 6,500 employees across DTEK Dobropilliacoal, DTEK Bilozerska Mine and DTEK Zhovtneva CPP will be put on temporary redundancy for the duration of quarantine. The remaining employees will provide maintenance services for enterprises - ventilation of mine workings and pumping of water. This will allow for the rapid scale-up of work activities in mines and factories when the situation in the industry changes.

In accordance with the Sectoral Agreement and collective bargaining agreements, all employees who are placed in a downtime retain their salary. During downtime, miners will continue to receive income in the amount of the tariff rate, while retaining seniority. In total, about 8 thousand employees work at DTEK Dobropilliacoal, DTEK Bilozerska Mine and DTEK Zhovtneva CPP.

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Profile

DТЕК is the largest private investor in Ukraine’s energy sector.
DTEK Group produces coal and natural gas, generates electricity at the termal, solar and wind power plants, distributes electricity, supplies electricity to end consumers, provides energy efficient solutions and develops a network of EV charging stations.
In 2018, DTEK’s capital investments totalled UAH 20 bln. besides, the company paid UAH 27 bln of taxes. DTEK employs 80 thousand people.
The company is 100% owned by SCM Limited. Ultimate beneficial owner – Rinat Akhmetov.