Business news from Ukraine

Business news from Ukraine

Supply of electricity from Ukraine to Hungary, Slovakia and Romania decreased by 28.5%

Ukraine in January-November 2020 reduced electricity exports by 23.1% (1.331 billion kWh) compared to the same period in 2019, to 4.425 billion kWh, according to Ukrenergo.

According to the calculations of the Interfax-Ukraine agency, the supply of electricity from the Burshtyn TPP energy island to Hungary, Slovakia and Romania decreased by 28.5% (by 1.121 billion kWh), to 2.805 billion kWh.

Electricity supplies to Poland increased by 12% (by 147.9 million kWh), to 1.381 billion kWh.

Electricity supplies to Moldova amounted to 156 million kWh, which is 73.9% (441 million kWh) less than in January-November 2019.

Since the beginning of the year, exports to Belarus amounted to 82.8 million kWh.

Ukrainian electricity was not exported to Russia.

At the same time, over the 11 months, Ukraine also reduced electricity imports by 2% (by 43 million kWh) compared to the same period last year, to 2.156 billion kWh. In particular, 1.356 billion kWh were supplied from Slovakia, 506.9 million kWh from Hungary, 152.3 million kWh from Belarus, 87.9 million kWh from Romania, 53.4 million kWh from the Russian Federation.

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UKRAINE’S METALLURGICAL ENTERPRISES RAISE USE OF GAS%, DECREASE ELECTRICITY

The metallurgical enterprises of Ukraine in January-October this year increased consumption of natural gas by 1% compared to the same period last year, to 1.55 billion cubic meters.
According to the information of the Ukrmetalurgprom association, electricity consumption by metallurgical enterprises during this period amounted to about 9.12 billion kWh (96% compared to January-October 2019).
As reported, Ukrainian metallurgical enterprises in 2019 reduced natural gas consumption by 2% compared to 2018, to 1.8 billion cubic meters. Electricity consumption

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UKRAINE REDUCES ELECTRICITY PRODUCTION BY 5.4%

Electricity production in the united energy system of Ukraine in January-October 2020 decreased by 5.4% (by 6.888 billion kWh) compared to the same period in 2019, to 119.819 billion kWh, the Ministry of Energy has told Interfax-Ukraine.
Nuclear power plants (NPP) for the ten months of this year reduced electricity generation by 6% compared to the same period last year, to 63.030 billion kWh. In particular, production of electricity at Zaporizhia NPP amounted to 22.248 billion kWh (29.6% less compared to January-October 2019), Yuzhnoukrainsk NPP some 15.126 billion kWh (6.9% more), Rivne NPP some 15.929 billion kWh (6.5% more), Khmelnytsky NPP some 9.727 billion kWh (up by 52.5%).
Thermal power plants (TPP), as well as combined heat and power plants (CHPP) and cogeneration plants reduced their output by 16.2%, to 39.317 billion kWh. In particular, the generating companies of TPPs reduced production by 23.7%, to 29.544 billion kWh, while CHPP and cogeneration plants increased it by 19.3%, to 9.774 billion kWh.
Hydro power plants and pumped storage power plants reduced production by 6.1%, to 6.237 billion kWh, and block stations increased by 8.2%, to 1.601 billion kWh.
Electricity production by non-traditional sources (wind power plants, solar power plants, biomass) increased by 2.1 times, to 9.634 billion kWh.
The share of nuclear power plants in the structure of electricity production amounted to 52.6%, TPPs, CHPPs and cogeneration plants 32.8%, hydro power plants and pumped storage power plants 5.2%, block stations 1.3%, alternative sources 8%.

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UKRAINE CUTS ELECTRICITY CONSUMPTION BY 4.2% IN JAN-OCT

Electricity consumption in Ukraine, taking into account in-process losses in power grids, decreased 4.2% in January-October 2020, compared to the same period in 2019, to 117.919 billion kWh, the Ministry of Energy has told Interfax-Ukraine.
Excluding in-process losses, electricity consumption in the first 10 months decreased 3.2%, to 95.88 billion kWh.
The country’s industry, excluding technological losses, reduced electricity consumption by 5%, to 40.614 billion kWh. In particular, metallurgical industry consumed 22.527 billion kWh (7.4% less compared to January-October 2019), fuel industry some 2.654 billion kWh (5.8% less), machine building industry some 2.504 billion kWh (17.1% less), chemical and petrochemical some 3.482 billion (14.4% more), food and processing some 3.553 billion kWh (4.2% less), construction some 1.9 billion kWh (1.1% more), others some 3.553 billion kWh (0.5% more).
In addition, agricultural enterprises consumed 3.116 billion kWh (0.6% more), transport some 4.595 billion kWh (14.8% less), developers some 745.2 million kWh (4.5% less).
In January-October 2020 the country’s population consumed 29.498 billion kWh (2.8% more), households some 11.454 billion kWh (6.9% less) and other non-industrial consumers some 5.858 billion kWh (3.8% less).
The share of industry in total electricity consumption in the first 10 months fell from 43.2% to 42.4%, while the share of the population grew to 30.8% from 29%.
In October 2020, electricity consumption, taking into account in-process losses, decreased 4.6% compared to the same month of 2019, to 11.79 billion kWh, excluding in-process losses it fell by 0.8%, to 9.641 billion kWh.

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UKRAINE’S METALLURGICAL ENTERPRISES REDUCE GAS AND ELECTRICITY CONSUMPTION

Metallurgical enterprises of Ukraine reduced the consumption of natural gas by 1% in January-September this year compared to the same period last year, which accounted for 1.39 billion cubic meters.
According to the information from the Ukrmetalurgprom association, electricity consumption by metallurgical enterprises amounted to about 8.22 billion kWh for this period (95% compared to January-September in 2019).
As reported, Ukrainian metallurgical enterprises reduced consumption of natural gas by 2% in 2019 compared to 2018, which accounted for 1.8 billion cubic meters. Electricity consumption by metallurgical enterprises amounted to about 11.2 billion kWh in 2019 (95% compared to 2018).
In 2018, metallurgical enterprises, including those in the temporarily uncontrolled territory reduced consumption of natural gas by 4% compared to 2017, but increased it by 4% without the uncontrolled territory, which accounted for 1.840 billion cubic meters. Electricity consumption by metallurgical enterprises amounted to 11.76 billion kWh in 2018 (102% of the consumption in 2017 with uncontrolled territory, and 106% without it).

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ELECTRICITY TRANSMISSION TARIFF TO RISE BY 2.7 TIMES

NPC Ukrenergo proposes to increase the tariff for electricity transmission by almost 2.7 times, to UAH 640.48/MWh starting from November 1 of this year and to set green metallurgy tariff at UAH 108.83/MWh (set as of August 1 the tariff for transmission was UAH 240.23/MWh, excluding VAT).
The draft changes to the tariff for public discussion have been published on the Ukrenergo website. Hearings on the draft amendments are scheduled for September 25.
According to the hearing procedure, their minutes will be submitted to the National Energy and Utilities Regulatory Commission of Ukraine (NEURC).
According to the explanatory note for the bill, the need to revise tariffs arose as Ukrenergo projected deficit on the Public Service Obligation (PSO) amounting to UAH 9.951 billion due to feed-in tariffs compensation, increased payments for Chornobyl nuclear power plant services by court decision (from UAH 13.381 million to UAH 18.244 million per annum), and also taking into account the general deficit of funds budgeted in 2020 tariff for the payment of public commitments to the budget in the amount of UAH 586 million. With regard to the latter, in particular, it is noted that in the first half of 2020 Ukrenergo fulfilled its obligations to the state budget for paying dividends in full in the amount of UAH 559 million at the tariff of UAH 79 million, paid income tax of UAH 664 million at the tariff of UAH 557 million.
“It is proposed to include the total amount of deficit (UAH 10.546 billion) in the tariff for electricity transmission services starting from November 1,” says explanatory note.
It is also noted that tariff calculation takes into account the expected volume of transmission (consumption), electricity exports in November-December 2020 in the amount of 25.288 million MWh.

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