The thermal power sector should be demonopolized before Centrenegro, the last state-run in the sector, is sold, Energy and Coal Industry Minister of Ukraine Volodymyr Demchyshyn has said.

"Until the situation with the monopoly is settled on the market, this could be dangerous," he said after a cabinet meeting in Kyiv on Wednesday.

Demchyshyn said the current cash cost of one kilowatt-hour (kWh) of electricity generated by Centrenergo is 70 kopecks per kWh, while it is 99 kopecks per kWh at DTEK.

The minister fears that after the privatization of Centrenergo, which holds a 30% share of the sector, the new owner could demand an increase in tariffs.

He said that the issue of whether a new owner would continue to buy coal from state coalmines is to be settled before the privatization of Centrenergo.

Demchyshyn said that attempts at making Centrenergo bankrupt can be resolved.

The minister has doubts about whether large sums could be raised from the sale of the company as one of its thermal power plants is located 40 kilometers away from the contact line in Donbas, and two other plants are consuming anthracite, which Ukraine faces a shortfall in.

Demchyshyn also said that France's GDF that has shown interest in Centrenergo, however it has not presented a business plan for the company and did not name the indicative price at which the company could be bought.

He said that Andriy Favorov, who previously worked as the commercial director at DTEK, is always present during visits of GDF representatives.