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Donbasenergo announced the possible bankruptcy of the company and mass layoffs

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The reason for such radical consequences for the energy generating industry is the inaction of the National Commission, which carries out state regulation in the fields of energy and utilities, in relation to "systematic manipulations" in the electricity market.

Donbasenergo announced the possible bankruptcy of the company and mass layoffs

Donbasenergo PJSC warns that the avalanche collapse of electricity prices in July this year will lead to irreversible consequences for the entire energy system of Ukraine.

Systematic manipulations in the market, as well as imperfection of regulatory norms, within the framework of which the power generation of Ukraine is forced to operate, led to the fact that the price in the day-ahead market (DAM) in May amounted to 930 UAH /MW * h, in June - 1362 UAH /MW * h. In just 6 days of July, the price “collapsed” to 770 UAH /MW * h. Thus, within a few days of this month, the PCB price reached its lowest level - without any justified reason - in the entire history of the new market model.

Donbasenergo PJSC stated that for a long time it has been generating only losses, as a result of which it became impossible to pay for the services of NEC Ukrenergo, which led to the assignment of the company with the “default” status by the latter.

“If the situation is not immediately stabilized, the accumulation of coal products in warehouses to prepare for the autumn-winter period 2021 - 2022 by the power generating companies of Ukraine is excluded. Inaction of the Regulator may lead to the fact that generating companies will soon be unable to fulfill their own financial obligations to counterparties and personnel, which will lead to the subsequent bankruptcy of energy enterprises and a social explosion - the dismissal of tens of thousands of people, ”the company said in an e-mail message.

Donbasenergo's press service emphasized that given the insufficient level of its own capacities, Ukraine's strategic goal for 2022 - synchronization with the European energy system ENTSO-E - is out of the question.

Donbasenergo urged the regulator and all state authorities to immediately intervene and correct the current situation on the electricity market, stop manipulations and develop measures to prevent such large-scale catastrophes in the market in the future.

Donbasenergo PJSC made a net profit of UAH 29.09 million in 2020 against UAH 67 million in a net loss in 2019. PJSC Energoinvest Holding owns 60.86% of the shares of Donbasenergo, another 25% of the shares of the generating company are owned by the state. Currently, the control over the company belongs to the People's Deputy of Ukraine Maxim Efimov.

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