Demchyshyn: Akhmetov's DTEK's inflated tariff forces him to buy electricity from Russia.

by Editor • 02.04.2015 • 0 Comments

Vladimir Demchishin

Vladimir Demchishin

At a press conference in Kyiv, Energy and Coal Industry Minister Volodymyr Demchyshyn accused Akhmetov of forcing Ukraine to buy electricity from Russia due to his energy monopoly.

As Demchishin explained, 1 kWh of Russian electricity costs about 80 kopecks. And the tariff DTEK will receive is 90 kopecks per 1 kWh. At least in April, electricity imports from Russia will pose significant competition to Akhmetov's DTEK.

According to Demchyshyn, Rinat Akhmetov's energy holding company refuses to buy coal from state-owned mines, declaring that the tariff set for them by the National Commission for State Regulation of Energy and Public Utilities is insufficient.

As the minister noted, after six months of negotiations with DTEK, the Ministry of Energy and Coal Industry concluded that coal mining and electricity generation are a profitable business for Akhmetov's company. The ministry calculated that the cost of coal production at DTEK's mines is approximately UAH 800-900 per ton. Even if the cost of coal production is assumed to be UAH 1100, the cost of 1 kWh of electricity would be approximately 70-75 kopecks. Therefore, the inflated electricity production tariff charged by Akhmetov's DTEK forces the company to purchase electricity from Russia at a lower price.

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