Business news from Ukraine

METALLURGICAL ENTERPRISES OF UKRAINE CUT ELECTRICITY CONSUMPTION BY 6% IN Q1

The metallurgical enterprises of Ukraine in January-March of this year maintained consumption of natural gas at the level of the same period last year, at 460 million cubic meters.
According to information from the Ukrmetalurgprom association, electricity consumption by metal enterprises over this period amounted to about 2.75 billion kWh (94% from January-March 2019).
As reported, the metallurgical enterprises of Ukraine in 2019 reduced consumption of natural gas by 2% compared to 2018, to 1.8 billion cubic meters. Electricity consumption by metal enterprises in 2019 amounted to about 11.2 billion kWh (95% compared to 2018).

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METALLURGICAL ENTERPRISES OF UKRAINE CUT ELECTRICITY CONSUMPTION BY 6% IN Q1

The metallurgical enterprises of Ukraine in January-March of this year maintained consumption of natural gas at the level of the same period last year, at 460 million cubic meters.
According to information from the Ukrmetalurgprom association, electricity consumption by metal enterprises over this period amounted to about 2.75 billion kWh (94% from January-March 2019).
As reported, the metallurgical enterprises of Ukraine in 2019 reduced consumption of natural gas by 2% compared to 2018, to 1.8 billion cubic meters. Electricity consumption by metal enterprises in 2019 amounted to about 11.2 billion kWh (95% compared to 2018).

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UKRAINE CUTS ELECTRICITY CONSUMPTION IN JAN-MARCH

Electricity consumption in Ukraine in January-March 2020, taking into account in-process losses in power grids, fell by 5.6% (by 2.366 billion kWh) compared to January-March 2019, to 39.644 billion kWh, the Ministry of Energy and Environment Protection has told Interfax-Ukraine.
Excluding in-process losses, electricity consumption over the period decreased 3.6% (by 1.179 billion kWh), to 31.965 billion kWh.
The country’s industry, excluding in-process losses, reduced electricity consumption by 5.8%, to 12.429 billion kWh. In particular, metallurgical industry consumed 6.746 billion kWh (9.5% less compared to January-March 2019), fuel industry some 849.9 million kWh (6.6% less), machine building industry some 959.9 million kWh (14.2% less), chemical and petrochemical some 2.029 billion kWh (24.2% more), food and processing some 1.088 billion kWh (1.2% less), construction materials some 483.4 million kWh (2.1% less), and others some 1.283 billion kWh (0.8% down).
In addition, agricultural enterprises consumed 854.8 million kWh (4.2% less), transport some 1.708 billion kWh (6.8% less), and developers some 282.5 million kWh (7.6% down).
In January-March 2020, the country’s population consumed 10.407 billion kWh (0.9% up), households some 4.138 billion kWh (6.7% down), and other non-industrial consumers some 2.145 billion kWh (1.3% down).
The share of industry in total electricity consumption in January-March 2020 fell from 39.8% to 38.9%, and the share of the population grew to 32.6% from 31.1%.
In March 2020, electricity consumption, taking into account in-process losses, decreased by 7% (by 948.2 million kWh) compared to the same month of 2019, to 12.611 billion kWh, excluding in-process losses it fell by 3.9% (417.8 million kWh), to 10.374 billion kWh.

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ELECTRICITY CONSUMPTION IN UKRAINE DECREASES BY 7.5%

Electricity consumption during quarantine, from March 12 to March 31, 2020, decreased by 7.5% compared to the same period in 2019, to 7.911 billion kWh, Ukrenergo transmission system operator reported to Interfax-Ukraine.
The average temperature for the indicated period was 5.6 degrees above zero compared to the temperature 4.9 degrees above zero in 2019.
Within the first week of quarantine, March 12-18 (the average temperature was 5 degrees above zero), Ukraine consumed 2.838 billion kWh, which is 6.8% less than within the same dates in 2019 (at an average temperature of 3.7 degrees above zero) and 0.9% higher than within the previous week, March 5-11 (8.5 degrees above zero).
Consumption within March 19-25 amounted to 2.786 billion kWh (at temperature of 4 degrees above zero), which is 6.6% lower than within the same period in 2019 (at temperature of 5.5 degrees above zero) and 1.8% lower than within the first quarantine week, and 0.9% less than the week before quarantine.
According to the results of the last six days of March (8.2 degrees above zero), Ukraine consumed 2.287 billion kWh, which is 9.2% lower than within the same period in 2019 (5.4 degrees above zero).
In general, according to recent data, electricity consumption in March at an average temperature of 6.4 degrees above zero was 12.414 billion kWh, which is 7.2% less than on March 2019, when the average temperature was 4.7 degrees above zero.
Earlier, Ukrenergo transmission system operator predicted that electricity consumption in Ukraine in March amid quarantine measures could decrease by 8.2% compared to the same period in 2019. The operator said that in addition to quarantine, which restricted the work of a number of enterprises in different industries of the economy, electricity consumption will also decrease due to such seasonal factors as warm weather and a decrease in heat supply.

ELECTRICITY PRICES FOR INDUSTRY IN UKRAINE EXCEED TARIFFS IN EUROPE

The electricity prices for industrial consumers in Ukraine are two times higher than in Eastern Europe, according to the data of the Market Operator as of April 1, 2020.
According to the following websites https://www.oree.com.ua/ and https://www.nordpoolgroup.com/maps/#/nordic, in particular, the base cost of electricity for Ukrainian industrial consumers is EUR 51.01 per MWh, for Polish is EUR 30.23, for Romanian is EUR 25.69, for Hungarian is EUR 25.78, and for Slovak is EUR24.1.
The cost of electricity for daylight hours in Ukraine is EUR 58.85 per MWh, while in Poland it costs EUR 31.7, in Romania and Hungary is EUR 26.81, in Slovakia is EUR 24.35.
According to Nord Pool, the European power exchange, the tariffs are even lower in Western Europe. Thus, the cost of electricity in Benelux is EUR 22.5 per MWh, in France is EUR 21.86, in Germany is EUR 19.95.
The countries of the Scandinavian Peninsula, under support of national economies during coronavirus disease (COVID-19) outbreak, reduced electricity prices to minimum levels. Thus, the tariffs in Norway, Sweden and Denmark dropped to EUR 4.58 per MWh.
As Ukrainian industrial company Interpipe said earlier on Wednesday, April 1, in the last week of March in Ukraine rise in price of electricity for industrial consumers was recorded, while the tariff increased from UAH 1.3 per kWh to unprecedented UAH 1.68 per kWh, or 35% compared to February.
At the same time, Interpipe urged Prime Minister of Ukraine Denys Shmyhal and the National Energy and Utilities Regulatory Commission to take the necessary regulatory measures to stabilize the electricity market. The government needs to take measures to prevent the rise in electricity prices by one of the key market players – National Nuclear Generating Company Energoatom, the group said in a statement.

“Amid COVID-19 pandemic, the governments of Europe and the United States are developing plans to support industry, introduce additional tools to stabilize the business. The situation is opposite in Ukraine. We, as a business, solve the problems of transferring employees, providing them with protective equipment, and purchase equipment for local hospitals. All this is amid falling volumes of orders. In response, we get a 35% increase in electricity prices and, as a result, a significant deterioration in our competitiveness in the falling market,” Interpipe Chief Financial Officer Denys Morozov said.
Interpipe is one of the ten largest manufacturers of seamless pipes in the world, is the third largest producer of seamless-rolled railway wheels in the world.
Interpipe incorporates five key assets: PJSC Interpipe NTRP, Interpipe NMPP, Interpipe NIKO TUBE, Interpipe VTORMET, and Interpipe STEEL.

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UKRAINE BOOSTS ELECTRICITY EXPORT BY 33%

Ukraine in January-February 2020 increased its electricity exports by 33.7% or 362.5 million kWh year-over-year, to 1.438 billion kWh, the Energy and Environmental Protection Ministry of Ukraine has told Interfax-Ukraine. Electricity supplies from the Burshtyn TPP energy island to Hungary, Slovakia, and Romania rose by 56.6%, to 1.049 billion kWh.
Exports to Poland grew by 17.6%, to 299.9 million kWh.
Exports to Moldova fell by 41%, to 88.6 million kWh.
Ukrainian electricity was not exported to Belarus or Russia in 2018 or 2019.
Ukraine imported 1.112 billion kWh of electricity in January-February 2020, including 599.5 million kWh from Slovakia, 274.7 million kWh from Hungary, 141.9 million kWh from Belarus, 51.9 million kWh from the Russian Federation, and 43.4 million kWh from Romania.
Due to crossflows related to the parallel work of the united energy system in Ukraine and systems in bordering countries (accounted for under contracts signed by Energomarket), Ukraine imported 8.1 million kWh of energy from Russia and 100,000 kWh from Belarus.

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