Coal production at state mines more than halves in 2020-2022 – head of Centrenergo

Coal production at state-owned mines fell by more than half in 2020-2022, Volodymy Yehorov, Director General of PJSC Centrenergo, said in an interview with delo.ua.

"According to our data, coal production has significantly decreased over the past few years at state-owned mines. So over the period 2020-2022, it has more than halved and now stands at about 2 million tonnes per year (it is not specified if it is ordinary coal or already enriched), while the price of coal, on the contrary, increased – from UAH 1,800 to UAH 4,230 per tonne without VAT and transportation," he said.

According to the Ministry of Energy, in 2020, production of ordinary coal by state mines amounted to 5.2 million tonnes, and in 2021 – 5,600 tonnes. The Ministry did not publish data on production in 2022.

Yehorov also said that the last proposal received by the generating company from the supplier in February 2023 provides for an increase in the price of coal products of state-owned coal mining enterprises to UAH 5,030 per tonne. At the same time, the price of alternative Ukrainian suppliers does not differ much from the offers of Ukrvuhilla SE, which is currently the main supplier of Centrenergo, and the price of coal from Europe with delivery today is about $180 (about UAH 6,600).

According to him, at present, in conditions of limited stocks and due to the current production of state mines, less than 50% of the total needs of Centrenergo can be covered, so the company can switch back to burning natural gas as the main type of fuel, which Naftogaz Ukrainy, by decision of the Cabinet of Ministers, must supply at a reduced price of UAH 9,125/1,000 cubic meters during January-April 2023.

"But this price is still too high for us, given the restrictions on the electricity markets that the regulator has set. We calculated and came to the conclusion that the justified price of gas to cover the cost of electricity generation for Centrenergo TPPs is UAH 7,200 per 1,000 cubic meters without transportation, distribution and VAT," he added.

Source: www.en.interfax.com.ua