DTEK ENERGY, as a reliable and responsible company, always prepares for the autumn and winter season in advance: we produce coal, plan stocks, and perform the required repairs. This year alone, the company has planned to invest in the repairs UAH 2.4 billion. However, every year it becomes increasingly difficult to do it in the normal mode.
Due to the crisis situation in the energy sector caused by unreasonably low prices on the day-ahead market, multi-billion debts accrued on the balancing market, and imbalances caused by price manipulations of speculative traders, the thermal and other generation companies are getting ready for the heating season in the midst of the acute shortage of working capital and systemic failure to cover the cost of generation.
With numerous state-owned and private generation companies forced to halt their operations during July due to fuel shortages, abnormally low tariffs that do not cover the minimum production cost of any power producer, and repairs, DTEK ENERGY’s TPPs operated at maximum capacity and ramped up their electricity output. This was done to meet the increased demand for its consumption during peak hours and thus maintain the stability and continuity of the Ukrainian energy system.
On some days in July, up to 28 power units of DTEK ENERGY’s TPPs were operating simultaneously in the energy system. In the same month, as compared to June, the company almost doubled the average daily electricity supply. In July, which was the worst month of the crisis, DTEK ENERGY’s TPPs produced 2.3 billion kWh of electricity, using more than 1.2 million tonnes of coal at the lowest tariff. At the same time, the price of electricity did not even cover the cost of coal.
Despite the crisis, during seven months of this year, DTEK ENERGY’s coal mining companies produced almost 9.8 million tonnes of G-grade coal. The company plans to produce over 17.1 million tonnes of coal in total by the end of this year. In addition, it is planned to commission 14 longwalls during August–December 2021.
As of 2 August of this year, there were 507.5 thousand tonnes of coal stocked at DTEK ENERGY’s warehouses. The stock of coals is increased on a daily basis. As a result of these efforts, TPPs have the required reserves of coal, which guarantee the stability of the Ukrainian energy system. Considering the situation that currently exists on the market, DTEK ENERGY has also been actively arranging the import of coal to cover the needs of the generation.
DTEK ENERGY’s generating companies are looking for all possible options and making every effort to pass peak loads despite the crisis situation and be able to supply electricity and heat to the country’s residents during the heating season without any interruptions.
At the same time, in order to create and maintain the coal stock at the warehouses of thermal power plants at the forecast level, the existing issues of debts on the balancing market that have already reached UAH 11.5 billion, including over UAH 2.2 billion owed to DTEK ENERGY’s generating companies, have to be resolved as a matter of urgency. This year alone, TPPs operating in the Ukrainian UES suffered a loss of UAH 5.1 billion. In the first five months of 2021, DTEK ENERGY’s TPPs have already lost UAH 1.2 billion in electricity production. Generating companies have outstanding debts of UAH 12.4 billion owed to suppliers of coal, owe UAH 1.4 billion to suppliers of inventories and services, and accrued UAH 185 million in tax debts.
Delays in resolving the critical issues experienced by the thermal generation will jeopardize the timely and adequate preparation for the autumn and winter season, repairs, and maintenance of equipment in proper technical condition, purchase of coal, and accumulation of its stock at warehouses.