13:10 30.08.2021

Ukraine quits idea to privatize regional power suppliers, wants to move them to Energy Ministry's management – decree

2 min read
Ukraine quits idea to privatize regional power suppliers, wants to move them to Energy Ministry's management – decree

The Cabinet of Ministers, together with the State Property Fund of Ukraine (SPF), shall remove state-owned stakes of shares in operators of electricity distribution systems (regional power supply companies) from the list of large privatization objects and the list of small privatization objects with their subsequent transfer to the management of the Ministry of Energy.

The instruction is enshrined in the decision of the National Security and Defense Council of Ukraine (NSDC) made on July 30 this year, which was put into effect by president decree No. 452 dated August 28 and published on the website of the head of state.

"To complete the implementation of measures to separate the activities of operators of electricity distribution systems, which shares are state-owned, and universal service providers, and to transfer state-owned universal service providers to the management of the state-owned enterprise National Nuclear Energy Generating Company Energoatom," it is said in the document.

As reported, for several years, 70%of shares in Khmelnytskoblenergo and Mykolaivoblenergo, 65% in Kharkivoblenergo, 60.25% in Zaporizhiaoblenergo and 50.99% in Ternopiloblenergo had been prepared for privatization. In June this year, the SPF presented an updated privatization schedule, in which the sale of four regional power suppliers (Mykolaivoblenergo, Kharkivoblenergo, Zaporizhiaoblenergo and Khmelnytskoblenergo) is scheduled for February 2022, while the schedules for two more regional power suppliers (Ternopiloblenergo and Cherkasyoblenergo) are not yet available.

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