The Antimonopoly Committee of Ukraine (AMCU) has started an investigation on the indices of possible anti-competitive coordinated actions when fixing price on the energy coal of state-run mines for the needs of thermal power plants (TPP) and combined heat and power supply plants (CHPP).
“The committee established that within 2017-2018 Energy and Coal Industry Ministry of Ukraine held meetings with state-owned enterprise Derzhvuhlepostach, PJSC Donbasenergo, LLC DTEK Energo, Ukrinterenergo State Foreign Trade Company, PJSC Cherkasy Khimvolokno, LLC TehNova company to reach the agreements over fixing prices for coal products of state-run enterprises for TPPs and CHPs that is confirmed by the protocols of these meetings,” reads by regulator-issued report.
According to the AMCU, these companies are potential competitors in the electricity and steam coal markets, respectively, the support of these companies to increase prices for coal products for TPPs and CHPs to a certain level could lead to distortion of competition.
In this regard, the committee began consideration of the case regarding anti-competitive actions of these companies, violation by the Energy and Coal Industry Ministry of law on the protection of economic competition in the form of inducing business entities to take anti-competitive concerted actions and promotion of such violations.
As reported, in recent years Ukraine’s Energy and Coal Industry Ministry during meetings recommended prices for coal sales of state mines for thermal power plants.
Coal reserves in the warehouses of thermal power plants (TPP) of energy generating companies in Ukraine as of August 19 stood at 753,400 tonnes, which is 46% (639,200 tonnes) less than a year earlier, according to data from the Ministry of Energy and Coal Industry. According to Interfax-Ukraine’s calculations, the reserves of anthracite currently amount to 262,800 tonnes, which is 8.1% (19,700 tonnes) more than last year. Gas coal reserves are 490,600 tonnes, which is 56.5% (659,000 tonnes) less than last year.
At the same time, coal reserves (anthracite and gas) in the warehouses of thermal power plants today amount to 164,600 tonnes, which is 50% less than a year earlier.
As reported, coal consumption by TPPs and combined heat and power plants in the country in 2018 increased by 5.7% (by 1.409 million tonnes) compared to 2017, to 26.22 million tonnes.
Ukraine’s thermal power plants (TPP) and combined heat and power plants (CHPP) in January-May 2019 reduced coal consumption by 4.4% (or 498,400 tonnes) compared to the same period in 2018, to 10.71 million tonnes.
According to the Ministry of Energy and Coal Industry, in May 2019, coal consumption at TPPs and CHPPs increased by 1% (or 18,100 tonnes) compared to the same month of 2018, to 1.835 million tonnes.
As reported, consumption of steam coal by TPPs and CHPPs in the country in 2018 increased by 5.7% (1.409 million tonnes) compared with 2017, to 26.22 million tonnes.
The use of gas coal rose by 11.1% (2.74 million tonnes), to 20.813 million tonnes, while that of anthracite decreased by 11% (665,600 tonnes), to 5.408 million tonnes.
The share of anthracite consumption in the total amount of coal consumed by thermal generation plants in 2018 was 20.6% against 24.5% in 2017 and 40.9% in 2016, the figures for gas coal stood at 79.4%, 75.5% and 59.1% respectively.
DTEK Group in January-March 2019 reduced coal imports by 24.1% (224,700 tonnes) compared to the same period last year, to 707,700 tonnes, according to a press release from the company.
In the first quarter, DTEK enterprises increased production of coal by 1.3% compared to the same period of 2018, to 6.476 million tonnes.
In particular, the production of G and DG grade coal (Ukraine) in January-March 2019 increased by 0.4%, to 5.782 million tonnes. Production of A grade coal by Obukhovskaya mine (the Russian Federation) for this period increased by 9.9%, to 694,600 tonnes.
Concentrate output rose by 1.4%, to 2.843 million tonnes. In particular, output at third-party processing plants in Ukraine decreased by 74.7%, to 58,000 tonnes, while at Obukhovskaya mine rose by 33.2%, to 472,900 tonnes.
Coal mining enterprises in Ukraine in January-March 2019 reduced run-of-mine (ROM) coal production by 7.1% (by 594,500 tonnes) compared to the same period in 2018, to 7.765 million tonnes.
According to the Ministry of Energy and Coal Industry, extraction of coking coal during the reporting period decreased by 24% (by 387,400 tonnes), to 1.227 million tonnes, and steam coal fell by 3.1% (by 207,100 tonnes), to 6.537 million tonnes.
Krasnolymanske LLC, under control of Vitaliy Kropachev, continued hiding information about its operations from the ministry started in September 2018.
The ministry said that in March 2019, ROM coal production fell by 11.9% (360,400 tonnes) compared with March 2018, to 2,664 million tonnes.
Coal mining enterprises managed by the Ministry of Energy and Coal Industry reduced coal production by 19.5% (by 230,900 tonnes), to 955,500 tonnes, in particular extraction of coking coal grew by 10.1%, to 165,800 tonnes, while steam coal production fell by 23.8%, to 789,700 tonnes.
Mines in Donetsk region produced 2.524 million tonnes of coal (14% less compared with January-March 2018), Luhansk region some 111,700 tonnes (23.7% less), Dnipropetrovsk region some 4.74 million tonnes (2% less), Lviv region some 374,300 tonnes (8.6% less), and Volyn region some 14,300 tonnes (52.2% less).
Ukraine in 2018 increased imports of coal and anthracite by 8.1% (by 1.610 million tonnes) compared to 2017, to 21.388 million tonnes. According to the State Fiscal Service, coal was imported for $3.035 billion, which is 10.6% more than in 2017.
At the same time, coal imports from the Russian Federation amounted to $1.822 billion (its share in imports was 60.02%), the United States to $907.173 million (29.89%), Canada to $162.546 million (5.36%), other countries to $143.937 million (4.74%). In addition, Ukraine last year exported 63,798 tonnes of coal and anthracite for $8.649 million, in particular to the Russian Federation for $4.597 million, Slovakia for $3.201 million, Moldova for $724,000, and other countries for $127,000.
