DTEK ready to buy coal directly from state coalmines at UAH 1,500 per tonne

The largest Ukrainian private energy holding DTEK is ready to buy coal directly from state coalmines at UAH 1,500 per tonne if the cost is included in the thermal power plants' tariff for electricity transmission, DTEK CEO Maksym Tymchenko said at a press conference in Kyiv on Thursday.

He said that DTEK is ready to buy all the coal produced by Lvivvuhillia and Volynvuhillia, and certain volumes of coal from other mines at the said price. Contracts are to be signed with the enterprises directly, not via a "black hole" as represented by Vuhillia Ukrainy.

"We’re ready to sign direct contracts. We're ready to sign contracts at the price of UAH 1,500. We're ready to be responsible for the payment for coal. We're ready to work and support [coal production at state coalmines], but please, explain to the regulator and the minister that the market price should be [used] and the adequate tariff that covers the cash cost should be [used]," Tymchenko said.

He said that the recent increase in tariffs for households allows the cash cost of electricity for thermal power generation to be covered, including an increase of tariffs for thermal power plants to UAH 1.20 per kilowatt-hour (kWh).

Tymchenko said he was indignant over the tariff for electricity transmission for coal-fueled combined heat and power plants being set at UAH 1.30-1.70 per kWh, compared to UAH 0.80 per kWh for thermal power plants.

He also said that DTEK decided not to import coal as the current tariff for electricity generated by thermal power plants does not cover its cash cost in full and the company saw losses due to burning expensive imported coal to support the country' power grid during the heating season.

"If the state could afford it, we would buy this coal at the price stipulated in the tariff and burn it at our plants," he said.

DTEK was founded in 2005 to manage the energy assets of SCM (Donetsk), which belongs to Rinat Akhmetov.