Ukrhydroenergo head expects extension of current PSO on electricity for public until balanced solution developed
The introduction of a new model of supporting electricity tariffs for the population will most likely be delayed by a month in order to complete the search for a compromise option that takes into account the interests of consumers and generates a compromise option, said Ihor Syrota, the general director of PrJSC Ukrhydroenergo.
"So far, there is no decision, there is a dialogue with the government. Most likely, the PSO (public service obligations) will be extended for a month (the current one ends on March 31) so that we could complete the dialogue and find the best solution. The best and compromise solution for all must be found: for consumers, for generation, for the government," he said in an interview with the Energy Reform portal.
The expert stressed that Ukrhydroenergo and Energoatom, which are the main donors of PSO, are unable to bear the load within the framework of special obligations and restore their facilities in parallel.
According to him, even without taking into account the damage inflicted by the invaders on the captured Kakhovska hydroelectric power station for UAH 16.7 billion, the losses of Ukrhydroenergo from Russian military aggression in the territory controlled by Ukraine amount to more than UAH 22 billion.
Syrota explained that these are the funds that the company needs today to restore its facilities that were destroyed or damaged as a result of enemy air attacks.
"With the funds that we now have left after the implementation of PSO for 2022, we need at least five years to cover this amount. We have lost almost 2 GW of capacity. As a result, generation has decreased, revenues have decreased, but PSO needs to be fulfilled, and it is growing. If its volume last year increased to UAH 18 billion, then Guaranteed Buyer predicts it at the level of at least UAH 22 billion this year. What we could earn, pay taxes and some funds for restoration and investments, we give to PSO," the CEO explained.
Syrota specified that the company currently allocates more than 55-60% of its total income to cover special obligations, plus taxes and dividends must be paid.
