Business news from Ukraine

Business news from Ukraine

UKRAINE REDUCES ELECTRICITY CONSUMPTION IN 11 JAN-NOV 2019

Electricity consumption in Ukraine in January-November 2019, taking into account in-process losses in power grids, decreased by 1.2% (by 1.648 billion kWh) compared to the same period in 2018, to 136.220 billion kWh, the Ministry of Energy and Environment Protection has reported.
Excluding in-process losses, electricity consumption for the 11 months decreased by 0.5% (by 586.3 million kWh), to 109.736 billion kWh.
The country’s industry, excluding in-process losses, reduced electricity consumption by 0.6%, to 47.112 billion kWh. In particular, metallurgy consumed 26.623 billion kWh (1.4% less compared to January-November 2018), fuel industry some 3.111 billion kWh (3.5% less), machine building sector some 3.354 billion kWh (8.6% down), chemical and petrochemical some 3.395 billion kWh (19.6% more), food and processing some 4.142 billion kWh (0.6% more), construction materials some 2.073 billion kWh (0.1% more), and others some 4.414 billion kWh (1% down).
In addition, agricultural enterprises consumed 3.430 billion kWh (2.6% less), transport some 5.965 billion kWh (5% less), and construction some 873.5 million kWh (2.5% down).
The population of the country in January-November 2019 consumed 31.981 billion kWh (0.9% less), household consumers some 13.694 billion kWh (1.4% less), and other non-industrial consumers some 6.680 billion kWh (9.4% more).
In the 11 months of 2019, the share of industry in total electricity consumption remained unchanged at 42.9%, and the share of the population decreased from 29.3% to 29.1%.

UKRAINIAN HOLDING ASCANIA GROUP ENTERS ELECTRICITY AND NATURAL GAS MARKETS

The Ascania multi-profile Ukrainian holding has entered the electricity and natural gas markets by creating Ascania Energy to supply electricity and natural gas to commercial consumers, the founder and shareholder of the holding, Valeriy Gorban, has said.
“We were prompted to open this business line by the fear of a significant increase in electricity tariffs after the launch of the new market model. When the market opened, we predicted an increase in the cost of electricity for enterprises by 20-25%. In fact, after July 1, the price soared by 40-50%. Our group consumes a large amount of electricity. These are tremendous costs. But understanding the market makes it possible to partially compensate for these losses,” he told Interfax-Ukraine.
According to Gorban, today, the company provides customers with about 17 million kWh of electricity monthly, and began to prepare for entering a new segment for itself early 2018.
“In recent years, we have observed the process of gradual liberalization of the energy market of Ukraine. The creation of a fairly free natural gas market in 2016-2017 allowed us to diversify the supply of this resource, gain expertise in this segment and start supplying gas,” the founder of the holding said.
Ascania Energy is part of the Ascania Group, which unites 12 companies. Among the areas of activity are import, production and distribution of food products, honey processing and export – Ascania-Pak, rose growing – Ascania-Flora, soft drinks production – Kvass Beverages, logistics services, electricity supply, small arms production weapons, security services and training of security personnel of private and state structures.
The group has branches throughout Ukraine and offices in Berlin (Germany) and Guangzhou (China).

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IMPORT OF ELECTRICITY TO UKRAINE FIRST SINCE LAUNCH OF NEW MARKET EXCEEDS EXPORT

The total volume of imported electricity in November 2019 first since the launch of the new electricity market exceeded the total volume of exported electricity – by 5%, the press service of national energy company Ukrenergo has reported. At the same time, the total import volume amounted to 661,000 MWh, the total export volume reached 629,000 MWh, the company said. According to Ukrenergo, 370,600 MWh were imported into the Burshtyn TPP, and 290,400 MWh to the Integrated Power System (IPS) of Ukraine.
At the same time, Ukrenergo said that in order to ensure balance and operational security of the power grid, the company limited the planned import of electricity. As a result, in November, imports from Belarus were limited by 46% (from 294,700 MWh to 157,800 MWh), by 34% from Russia (from 201,500 0 MWh to 132,600 MWh), and by 1% from countries importing into the Burshtyn TPP (from 374,900 MWh to 370,600 MWh).
According to the company, in November 2019, imports increased by 10% compared with October (from 601,000 MWh to 661,000 MWh), compared to July – by 140% (from 274,600 MWh up to 661,000 MWh).
According to Ukenergo, the largest increase in electricity imports was recorded from Hungary – almost doubled. At the same time, imports from Slovakia increased by 8% and from Russia by 4%.
Electricity export from the Burshtyn TPP amounted to 483,700 MWh, while supplies to Romania almost tripled.
Exports from the IPS of Ukraine amounted to 145,200 MWh.
According to Ukrenergo, the IPS of Ukraine exported electricity to Poland and Moldova.

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ENERGOATOM REDUCES ELECTRICITY PRODUCTION BY 2.2%

Electricity production by all power plants of state enterprise Energoatom in January-November 2019 decreased by 2.2% (by 1.656 billion kWh) compared to the same period of the previous year, to 74.889 billion kWh.
According to the press service of the company, the plan for the production of electricity for the specified period in 2019 was overfulfilled by 1.4%.
The share of Energoatom in the overall structure of electricity production in the country amounted to 53.6%, which is 0.2 percentage points more than in January-November 2018.
The power plants of the state enterprise for the reporting period supplied 70.34 billion kWh, which is 2.3% less than a year earlier.
The volume of capital investments for the 11 months amounted to UAH 12.094 billion against UAH 10.069 billion. in January-November 2019, financing of capital investments totaled UAH 12.957 billion against UAH 10.798 billion.
During the reporting period, the company transferred UAH 12.328 billion to the budgets of all levels, insurance payments amounted to UAH 2.343 billion.
Some 12 violations were recorded in the operation of Ukrainian nuclear power plants for the 11 months of 2019 against 20 violations for the 11 months of 2018.

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BELARUS PLANS TO DOUBLE ELECTRICITY EXPORT, UKRAINE IS PREMIUM MARKET

Belarus will export about 2 billion kWh of electricity in 2019, which is almost two times more than in 2018, Deputy Minister of Energy of Belarus Vadim Zakrevsky told reporters in Minsk on Wednesday. “According to the results of the year, the total volume of electricity export can reach 2 billion kWh. In the past, it was about 1 billion kWh. Export could theoretically grow up to 4 billion kWh,” Zakrevsky said.
According to him, this year electricity is exported to the Baltic countries and Ukraine. At the same time, the deputy minister said that Ukraine is a premium market for Belarus in comparison with the Baltic. “The advantage of the benefits in supplying electricity to Ukraine compared to the Baltic is enormous. It is 80 to 20. Now there is such a price for Belarusian energy that it is beneficial for Ukrainians. Belarus does not dump and sells with profit,” the deputy minister said.

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SIX UKRAINIAN COMPANIES BUY ACCESS TO 1.1 GW OF INTERSTATE NETWORK TO IMPORT ELECTRICITY FROM RUSSIA

Six companies have bought access to 1.1 GW of interstate network carrying capacity for importing electricity from the Russian Federation to Ukraine in December, according to information on the website of Ukrenergo. Thus, TAS Energy of Sergiy Tigipko bought 350 MW (24.6% more compared to the access capacity purchased in November). Ukrtorgenergy LLC acquired an additional 300 MW of capacity in December (Volodymyr Lytvynchuk is the ultimate beneficiary of the company founded in May 2019, while in mid-August the core business changed from electricity production to trade), which in November gained access to only 10 MW. The next largest one in terms of volume is ONK Group with 150 MW. At the November auction, this company failed to gain access to the section.
In turn, United Energy LLC (which has contracts for the supply of energy to the enterprises of Ihor Kolomoisky and the Surkis brothers) bought access to 100 MW in December (against 500 MW in November), and ETG LLC bought the same amount.
Access to the capacity for imports from Belarus was obtained by D Trading (Donbasenergo of Maksym Yefimov) and ERU Trading LLC (the Energy Resources of Ukraine group of companies) in the amount of 450 MW and 50 MW respectively.
D Trading also bought access to 404 MW for imports from Moldova and 85 MW from Hungary.

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