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Ukrenergo allocates additional funds to prepare for the heating season

Ukraine’s electricity transmission system operator Ukrenergo is allocating part of the income from auctions of cross-border transmission capacity allocation to pay for the services of electricity producers who participate in the balancing market. They, in turn, in preparation for the heating season can use these funds to repair power units and thermal generation – also to buy gas and coal.

“Preparing for the heating season is the main task of the power industry today,” said Volodymyr Kudrytskyi, CEO of NPC Ukrenergo. “This law […] is an example of how the authorities and energy companies can work together to solve complex problems in difficult times. Upcoming winter will certainly be extremely difficult, but we must do everything possible to pass it successfully.”

The above-mentioned law, signed by President Volodymyr Zelenskyy allows Ukrenergo to distribute the Company’s income from auctions of cross-border transmission capacity allocation in three directions. Namely, of the 2.7 billion hryvnia (approximately 73.4 billion euros) that the Company earned at auctions before 30 July 2022, 45 per cent should be used to pay for producers’ services on the balancing market, 10 per cent for maintenance and increasing the transmission capacity of interconnectors and the remaining 45 per cent can be forwarded to pay the Guaranteed Buyer for the services of increasing the share of electricity generation by renewables.

The income from auctions of cross-border transmission capacity allocation, which Ukrenergo will receive from 1 August 2022 to 1 January 2023, should be used equally for payments for services in the balancing market and the Guaranteed Buyer’s services.

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