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NCREUS discovers abuse by DTEK Zakhidenergo in the “Burshtyn Island”

11 October 2019

Since the launch of the electricity market, traders affiliated with DTEK Zakhidenergo have not been utilizing the cross-border transmission capacity they bought out, thus causing shortages in the day-ahead and the intraday markets

The National Commission for Government Regulation of the Energy and Utilities Sectors (NCREUS) has discovered the instances of violation by DTEK Zakhidenergo Group of the law on protection of economic competition in the “Burshtyn Energy Island”, NCREUS press service reports.

NCREUS says that during the first three months after the launch of a new electricity market model in Ukraine, shortage of electricity supply in the day-ahead and the intraday markets has increased.

The Commission concluded that this situation has occurred in the trading area of the “Burshtyn Energy Island” because of the actions of DTEK Zakhidenergo and its affiliated traders. Between July and September 2019, the company bought out the cross-border transmission capacity from the direction of Slovakia, but the amount of electricity imports from Slovakia to this area was insignificant.

Simultaneously, DTEK Zakhidenergo was reducing the volume of electricity sales in the day-ahead and the intraday markets in July-September 2019, compelling suppliers and their consumers to obtain electricity in the balancing market at a higher price.

Earlier, the Antimonopoly Committee of Ukraine (AMCU) also noticed the abuse. On 4 October 2019, AMCU launched investigation into violation of the law on protection of economic competition and abuse of monopolistic position by DTEK Zakhidenergo JSC in the electricity market within the trading area of the “Burshtyn Energy Island”, because the company generates close to 90 percent of the total electricity output in this area.

As reported earlier, Ukrenergo PrJSC made a similar statement yesterday regarding abuses committed by traders in the “Burshtyn TPP Island” area. The company said that importers in the “Burshtyn TPP Island” area are failing to offset shortages in the day-ahead market by importing electricity from Slovakia and Hungary, even though the transmission capacity they bought out is sufficient for that.

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