Market situation for thermal generation complicated, requires intervention – Donbasenergo top manager

The situation on the electricity market for thermal generation threatens with a significant shortage of resources in the spring and disruption of preparations for the next heating season, Oleh Larionov, the commercial director of PJSC Donbasenergo, believes.

"The situation on the market is very difficult. January, which should be profitable in all respects, is deeply unprofitable. Not only for us, but for the entire thermal generation. Again, we have manipulations in the market, with the cost of electricity production of about UAH 3/kWh, the price on the market is UAH 2.2/kWh … We will be left without electricity in the spring," he said in a commentary to the Energy Reform portal on the sidelines of the discussion of the draft National Energy Strategy until 2050.

According to Larionov, these issues will be resolved at the prime minister's anti-crisis energy headquarters, whose meeting is scheduled for Thursday.

"We will discuss everything, decide and wait for the situation on the market to improve. This cannot continue," the commercial director of Donbasenergo emphasized.

He explained that the situation observed in the market in the summer of last year is now repeating, when a sharp decrease in demand in the day-ahead market led to a historic price drop (to UAH 426.06/MWh).

"We have manipulations in the market, many consumers have decided to leave the market, this is the same as in the summer. We need to take the same set of measures that was adopted in July," Larionov said, pointing out the insufficiently prompt response from government agencies.

As for plans to prepare for the start of the next heating season, the company's top manager noted that such preparation is a big question mark.

"If there is such a situation, there will be no next heating season for thermal generation, or rather, there will be no thermal generation in the next heating season," Larionov said.

Source: www.en.interfax.com.ua