ENERGO: Mounting debt owed to Ukrenergo threatens energy stability this winter

The money owed to Ukrenergo, the state-owned Ukrainian energy company, reached UAH59bn ($1.61bn), according to head of the board Volodymyr Kudrytsky, Interfax Ukraine reported on August 18.

The debt continues to accumulate, even though the prices for the population went up on June 1. A month later, limits were introduced on how much electricity can be sold at a high price on the market starting from July 1.

Companies owe UAH28bn on the balancing market and consume electricity without buying it, noted Kudrytsky. There is a ban on turning off the companies for various reasons, leading to continued debt growth. The remaining debt consists of UAH21bn for electricity transmission and UAH10bn for dispatching services.

At the same time, Ukrenrgo’s debt to market participants is around UAH50bn. The company owes UAH26bn to the state-owned Guaranteed Buyer (GarPok), which purchases electricity from energy producers, for compensating the company for the energy it generated from renewable sources at a fixed price.