The blockade has revealed one of the biggest scams in modern power industry – Lev Pidlisetskyi

Operating/not operating, earned/saved, to block/not to block, to be or not to be. These are the questions that have been haunting so many Ukrainians recently. Let’s try to sort things out.

Is Rotterdam working?

I will not dwell on the issue of the “Rotterdam+” formula. I will only make a conclusion. It is working, because it was introduced by an Order of the National Commission for State Regulation in Energy and Utilities on 3 March 2106 and no one has canceled it ever since.

Is it profitable?

It is. A lot. Not for ordinary Ukrainians though, since they are paying for it. I have explained it at the elementary level. Recently, Andriy Herus has explained everything in plain words.

The blockade of the occupied territories has made all of us experts. It has revealed all the lies and one of the biggest scams in the modern power industry. But for the blockade, there would already be another formula introduced, which would let cover an even greater cost of coal and avoid reporting for the previous year. Coal would be still transported from the occupied Donbas, and collaborators and Russian invaders would be financed in such a way. And another increase in tariffs and prices would be accounted for the war, the need for reforms, underfunding of the industry…

What’s next? What is the way out?

The blockade has made all professionals, especially the government, objectively look at the energy sector. Not to avoid discussing this issue, but to make it a priority. One of the functions of the state is to ensure reliable and quality power supply at the most reasonable prices. Has the power supply been reliable in the last few years? It has more or less. Have the prices been reasonable taking into account the available capacities? Doubtful. We have generating capacities in excess, worn out and inefficient electrical power units at power stations, corruption in determining the price of both the resources and the final product, we have no electricity market, we have no independent professional regulator.

By means of their corrupt connections manufacturers are seeking to establish prices and tariffs for their activities, and every Ukrainian buyer has no alternative than to pay for all this.

What to do:

1. Carry out an audit of all generating capacities. Do we need to maintain the inefficient generation which requires super efforts and funds for its functioning?

2. Find replacement for inefficient heating sources (in many cities thermal generation only works for heating). Aren’t there more effective ways of heating of cities?

3. Search for alternative sources of coal. We will not be safe until the supply source is in the occupied territories and is controlled by the aggressor!

4. Ensure the most efficient use of nuclear power with the ability to increase its production through modernization, along with the introduction of modern maneuvering capacities.

For a short term – a year or two – we will be able to reduce the need for the deficient anthracite coal by nearly a half – up to 5 million tonnes per year. Funds for the purchase of coal were provided in 2016, therefore no new increase in electricity prices is required. DTEK and Centrenergo must manage and make such a purchase. If we hear once again that there is no money for the purchase of coal, then it will be a confirmation that the purpose of Rotterdam+ was to obtain superprofit through generation, instead of diversification of supply. And for this there must be responsibility – political and criminal.

Lev Pidlisetskyj
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