REUTERS
Certain consumers in Donetsk region have been notified by Ukrainian state-owned enterprise Ukrinterenergo about a halt to power supplies.
The Ukrainian-controlled Donetsk Regional State Administration has asked the Ukrainian president, the prime minister and the head of the National Security and Defense Council (NSDC) to urgently allocate UAH 1.1 billion (US$40.8 million) in additional subvention to the region for repayment of debts of socially significant facilities for consumed electricity.
Read alsoDonetsk filtration station resumes water supplies to Avdiyivka
"Today, certain consumers in Donetsk region have received notifications from the Ukrainian state-owned enterprise Ukrinterenergo (supplier of 'last resort') about a halt to power supplies. Insolvent consumers signed a contract with the supplier (in particular, state coal mining enterprises and the Voda Donbasa water supply utility company). It is the state that mainly decides on the solvency of these enterprises," the administration said in a statement on March 26.
In particular, it is proposed that a subvention worth UAH 1.1 billion be provided to repay the debt of Voda Donbasa. Moreover, it is proposed that the "protected consumer" status be granted to socially important facilities.
"The Donetsk Regional State Administration addressed Ukraine's Ministry for Regional Development, Construction and Housing to avoid disconnection of drinking water supply and centralized drainage facilities – as objects of vital and strategic importance – from the power supply system, which may cause disastrous social and economic consequences across Donetsk region," the report said.
The Administration also added that in January 2019, the Cabinet of Ministers had already decided to allocate UAH 450 million ($16.7 million) from the reserve fund to ensure payment for consumed electricity by state-owned coal mines. However, to date, coal enterprises have not received the funds.
It worth noting that the contract for power supply between Ukrinterenergo and the enterprises that have not found independent suppliers expires on March 31. Among Ukrinterenergo's clients are Voda Donbasa, which supplies water to Luhansk and Donetsk regions in eastern Ukraine, as well as the state-owned coal mines. In connection with the termination of the contract (90 days under the law), Ukrinterenergo initiated the disconnection of the said enterprises from electricity supplies immediately after the contract is expired.