Energy Ministry says expensive U.S. coal not to raise electricity prices

The cost of anthracite coal, which will be supplied from the United States to Ukraine's Trypilska TPP owned by the state power generating company Centerenergo, will not affect electricity tariffs for the households, Deputy Energy and Coal Industry Minister for European Integration Natalia Boiko told one of the national TV channels.

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"The Ministry does not expect a revision of such tariff, since it is important for us that this price is included in the tariff that was laid out in the financial plan of Centrenergo, adopted in March this year. Accordingly, this is the frame Centrenergo can afford," Boiko said.

As UNIAN reported earlier, fighting in the eastern regions of Ukraine has caused a significant shortage of coal, primarily that of thermal anthracite produced in militant-controlled areas of Donetsk and Luhansk regions. Thus, the deficit of coal affects the operation of power plants, which had to reduce their capacity.

In order to ensure smooth operation of power grids, anthracite has been imported from South Africa. However, the issue of coal shipments to thermal power plants became critical after the launch of a blockade of trade with the occupied areas in late January 2017.

On July 31, Centrenergo concluded with the U.S.-based Xcoal Energy&Resources a contract for the supply of 700,000 tonnes of anthracite coal by year-end.

Read alsoUkraine’s Centrenergo strikes deal on energy coal supplies from U.S.According to the official, the first batch of 85,000 tonnes should arrive at the port "Yuzhny" (Odesa region) in early September this year.

Answering the question about the price of fuel, Centrenergo CEO Oleh Kozemko noted that the cost of each delivery will vary, adding that the price of coal for the first delivery is $113 per tonne.

Read alsoState Property Fund names privatization terms of OPP, CentrenergoPJSC Centrenergo is one of Ukraine's leading electricity producers. The company consists of three thermal power plants – Vuhlehirska, Zmiyivska, and Trypilska – with the total installed capacity of 7,665 MW, which is 14% of Ukraine's generating capacity. Centrenergo supplies electricity to Kyiv, Kharkiv, and Donetsk regions.

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