16:40 22.10.2019

Rada committee head Gerus proposes privatize Centrenergo in tandem with state-owned coalmines

2 min read
Rada committee head Gerus proposes privatize Centrenergo in tandem with state-owned coalmines

Head of the committee of the Verkhovna Rada for energy and utilities Andriy Gerus has proposed to put PJSC Centrenergo up for privatization in tandem with state-owned coalmines.

"I believe that privatization is necessary, but together with a certain raw material base. Take promising state-owned coalmines that have coal reserves and can work, combine them with Centrenergo and sell them," he said in an exclusive interview with Interfax-Ukraine.

In his opinion, the virtual absence of a competitive coal market in the country frightens off potential buyers of the power generating company, while the proposal to privatize it together with coal mining companies will arouse additional interest.

"If you sell Centrenergo without coal, then the potential investor will ask where to get it. They will tell him – in the market. And what is the market? There, one company controls 80% of the domestic production of steam coal. And when you have a monopolized raw material market, then it is very difficult for you to act and compete in such conditions. If we talk about import, buying it from Russia is instability, across the sea it means ports, logistics, and the time, when coal can go during a month and a half. In this case, if an investor comes and sees that he has an electricity generating facility and here he has raw materials, it is better for him," Gerus said.

He also did not rule out the possibility of putting for privatization the recently returned Kalush combined heat and power plant (CHPP) in conjunction with some mines of Lvivvuhillia or Volynvuhillia under the control of the Ministry of Energy and Environment Protection.

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