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New facts confirm a significant overestimation of electricity public consumption statistics

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12.04.2021

On April 7, 2021, the National Energy and Utilities Regulatory Commission of Ukraine (NEURCU) imposed a fine of UAH 1.7 million on JSC Kharkivoblenergo for violation of licence provisions of economic activity in electricity distribution. According to the regulator, in October 2020, Kharkivoblenergo accrued excess electricity consumption in the amount of 11.5 million kWh for 19 households.

It turns out that each of these households consumed 813.5 kWh every hour within 24 hours daily last October. It is such data that Kharkivoblenergo reflected in revenue metering, while Kharkivenergozbut acceded to these volumes of consumption, which are completely unrealistic, and referred them to household consumers use category.

It is such deliberately overestimated amount of electricity at the price of 15 kopecks per kWh that Energoatom supplied to the Guaranteed Buyer, which in turn transferred it to Kharkivnenergozbut. This resulted in NNEGC Energoatom losses of over UAH 20 million –  only regarding19 households and only in October 2020. It is clear that the surplus of these amounts of electricity was not used for the general public, but resold for commercial use at a much higher price.

In the applications of the SE «Guaranteed Buyer» Energoatom repeatedly stressed on the problem of overestimating the amount of electricity necessary for further sale to the public by generic service providers. After all, such a situation leads to economic losses for both Energoatom and the Guaranteed Buyer, and to abuses by other energy market participants.

SE NNEGC Energoatom finds  this situation unacceptable, as it results in a significant shortfall to the State budget of Ukraine. The Company will inform law enforcement authorities of substantial overstatement of electricity public consumption statistics in accordance with the law of Ukraine.

Energoatom also calls upon the NEURCU and the Guaranteed Buyer to consolidate efforts to identify similar cases in other regions of Ukraine, determine real amounts of electricity public consumption and enforce penalties for market participants abuses to prevent such abuses in the future.