Will "Ukrenergo" get back its money spent on coal PSO?

March 02, 2023

Ukrenergo company is a real energy titan that resisted enemy attacks and played a vital role during the successful winter season. But today - when the winter is over - we should remember that Ukrenergo also regularly carries an additional financial burden, which arouses some questions and concerns.

Specifically, last summer, the government entrusted the company with the function of a supplier with public service obligations (PSO) (Decision No. 838 of July 22, 2022), which obliged it to provide targeted interest-free reimbursable assistance to the State Enterprise Ukrvugillya in the amount of 2.5 billion UAH

This money was used to buy coal from state mines and supply it to state thermal generation enterprises. This is the main problem. The thing is that state-owned enterprises are usually a black hole into which the state can pour billions of hryvnias under various pretexts, which disappear forever. Or you will have to fight for every kopeck in court, and it will take years.

For Ukrenergo, which owes more than UAH 13 billion to the Guaranteed Buyer SE for 2022 and is already in arrears this year due to the low transmission tariff, set by a NERC decision, even 2.5 billion would mean a financial relief.

According to the resolution, the reimbursable financial assistance to Ukrvugillya State Enterprise must be repaid to Ukrenergo by June 1, 2023. We hope that there will be no bias in this case and the company will receive its funds back on time and fully, so that Ukrenergo has the resources for repair, restoration and, generally, preparation for the work as a supplier with public service obligations in 2023-2024.



Volodymyr Omelchenko

Director, Energy Programmes

Born in 1967 in Kyiv

Education: Kyiv Politechnic Institute, Department of Chemical Engineering (1992)

Author of over 50 scientific works and op-ed publications. Took part in development and implementation of international energy projects and scientific research in international energy policy


1992 – 1996 — worked in different positions in the mechanical engineering industry

1997 – 1998 — Head Expert of the Division of Oil, Gas and Petroleum Refining Industry of the Ministry of Economy of Ukraine

1998 – 2003 — Naftohaz Ukrayiny National Joint-Stock Company, in Charge of Oil Transportation Section

2004 – 2007 — Chief Consultant at the National Institute of International Security Problems of Ukraine’s NSDC

since February, 2007 — Leading Expert, Razumkov Centre. Director of Energy Programmes since 2013

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