The debt of NPC Ukrenergo to PrJSC Ukrhydroenergo on the balancing market is constantly growing and has already reached almost UAH 8 billion, Director General of the generating company Ihor Syrota has said.

"Almost eight already. That year, for example, there were UAH 4 billion. There is a significant difference. And debts are growing, and this is a problem for us. And if this continues for another year or two, we will go from being a profitable company to losses – due to systemic non-settlements on the balancing market," he said in an interview with Interfax-Ukraine.

At the same time, Syrota said that 80% of these debts are generated by state-owned companies: mines, regional power suppliers, Skhidny Mining, which do not pay for the electricity consumed at the balancing market.

According to him, as a result of these non-payments, Ukrenergo cannot predict anything when it will pay these debts.

"This is a question [growing debts in the balancing market], which I ask all the time and will ask again. Because it is critical for us... We immediately need to find a solution to pay off these debts," the head of Ukrhydroenergo said.

At the same time, he said that Ukrenergo paid the debt to the company for auxiliary services, which exceeded UAH 800 million, and Ukrhydroenergo itself now has no debts to fulfill public service obligations (PSO), which this spring year came to UAH 1.9 billion.

"But if there is such a situation at the end of the year, and debts on the balancing market continue to build up, then, of course, then we will not be able to pay PSO," Syrota said.

At the same time, he drew attention to the fact that the company's PSO volume at the end of the year will increase to approximately UAH 24-25 billion compared to the UAH 22 billion predicted in the spring, which was affected by the increase in the price of electricity for households from June 1.

"Income is increasing, but PSO is also increasing. It will not stand in one place, because the difference between the price for household consumers and the price in the market is also increasing. We may earn a little more, but we pay more to PSO. Therefore, for us when there is a PSO, the issue of raising the tariff is not the main one," the general director of Ukrhydroenergo said.

He said that in the total volume of PSO, which is approximately UAH 135-140 billion, UAH 25 billion is covered by Ukrhydroenergo, and the rest by National Nuclear Generating Company Energoatom.

"That is, our funds are just over 20%," Syrota said.