Russian energy consumers to pay for power supplies to occupied parts of Luhansk region

Supplies of Russian electricity to the militant-occupied areas of Luhansk region will be considered as technological losses of the Russian Federal Grid Company (FGC), which may lead to the increase in tariffs and overpay by Russian consumers totaling RUB 2-4.6 bln ($ 35-81 million) per year, Kommersant reports with reference to a source in the Russian energy ministry and two other sources in the industry.

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On April 30, the compensation scheme for electricity supply to the occupied areas of Luhansk region will be discussed at a meeting of the supervisory board of Market Council, Russia’s regulator of energy markets. The scheme will distribute electricity supplies to the militant-occupied areas throughout the Russian energy market.

Read alsoUkraine may halt water supplies to occupied Donbas over debts – energy minister"The main load over the tariff payment will fall on all consumers, except the population," said the source.

It is already estimated that this can raise the FGC tariff by 2.5% while the load on consumers can grow by RUB 4.6 billion ($ 81 billion). At the same time, the experts say the costs of electricity supplies from Russia to the occupied areas of Luhansk region will increase payments by consumers in Russia’s united energy grid by RUB 2-2.5 billion ($ 35-44 million).

Read alsoRussia mulls power supplies to occupied area of Luhansk regionThe scheme will be effective from April 30 this year until May 31, 2018.

As UNIAN reported earlier, Ukraine halted all electricity supplies to the occupied parts of Luhansk region April 25.

According to the ministry, on May 7, 2015, the Cabinet of Ministers of Ukraine by resolution No. 263 regulated the activities of energy suppliers in the uncontrolled territory of Ukraine, making it possible not to halt electricity supplies to any categories of consumers in the occupied areas of Luhansk and Donetsk regions. Lugansk Energy Association (LEA) was appointed a supplier for the militant-occupied parts of Luhansk region. The company has repeatedly reported to the Ministry of Energy and Coal Industry and other agencies that significant debts have accumulated due to non-payments by consumers from the ATO zone.

Read alsoUkraine explains move to halt power supplies to occupied parts of Luhansk regionLugansk Energy Association (LEA) CEO Volodymyr Gritsai April 24 announced the blackout of the occupied part of Luhansk region starting April 25.

Supplier of water utility services to the militant-controlled parts of Donetsk and Luhansk regions, Popasnyanskiy Vodokanal (water and wastewater treatment plant), which is among the facilities dependent on LEA’s electricity, was temporarily cut off from power supplies in December 2016, due to the debt.

As reported by Luhansk regional civil-military administration, the debt of KP Popasnyanskiy Vodokanal as of Dec 2, 2016, amounted to about UAH 124 million.

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