Electricity speculation disrupts DTEK's contract

DTEK withdraws from contract with Energoatom after resonance in the electricity market

Company. DTEK announced that cancellation of the contract with Energoatom«, explaining that the circumstances of the deal became the subject of public debate and caused a wide resonance in the energy market.

What was the reason?

The situation revolved around the following actions NNEGC Energoatom«, which two days before the price ceiling increase in the electricity market sold significant volumes of electricity to private traders.

According to market information:

• individual companies purchased 300-400% more electricity, than in normal periods;

• the sale took place at significantly lower prices, than those that were formed a few days later.

What the chart shows:

• Auction price (Energoatom) - 7 566 UAH

• Resale price 21.01 - 9 735 UAH

• Resale price 22.01 - 13 233 UAH

This clearly demonstrates the difference between the sale price of a state-owned company and the resale prices of traders a few days later.

Financial implications

As a result, the difference between the sale price of Energoatom« and resale prices by traders losses of a state-owned company are estimated at approximately UAH 2 billion.

Analysts note that this price gap was the key factor behind the public criticism of the deal and DTEK's subsequent decision to distance itself from the contract.

Management context

Additional attention to the situation is drawn to the fact that, according to open sources, the, persons associated with Mindich still work in the management of Energoatom, This was also the subject of discussions in the media and expert community.

Market position

The industry emphasises that the situation with electricity sales on the eve of the change in price restrictions undermined confidence in market transparency and may become the basis for inspections by regulators and law enforcement agencies.

At the same time, there have been no official decisions or public statements from Energoatom regarding possible losses or liability of officials not disclosed.