The multi-billion-dollar debt in Ukraine's balancing electricity market cannot be resolved solely through the efforts of the Ukrenergo National Power Company. According to RBC-Ukraine, Energy Research Center Director Oleksandr Kharchenko stated this. In his estimation, even if the system operator pays off its own obligations on the balancing market, the problem will not disappear: the total debt of other market participants to Ukrenergo, according to the expert, is approximately double the company's own debt obligations. Thus, the operator's unilateral steps are unable to close the systemic payment gap.
Why Ukrenergo Cannot Handle It Alone
Kharchenko explicitly expressed hope that Ukrenergo will stop trying to solve the balancing market problems on its own, calling this approach a "dead-end path." The expert is convinced that solving the situation requires a comprehensive government-level solution that should provide special mechanisms for paying off debts of enterprises that cannot independently pay for the electricity they consume. Without such external funding, he says, debt will grow regardless of how much money the operator allocates to pay off its own obligations.
Mines That Cannot Be Disconnected
The expert calls state-owned mines, including closed ones, which continue to consume electricity due to the need to pump out water, a key source of accumulating debt. "Even if the mine is not producing, water needs to be pumped out of it. And if you pump out water — that's electricity consumption, and there is no source of coverage," Kharchenko explained. Disconnecting such facilities from power supply is impossible due to the risk of an environmental disaster resulting from the flooding of mine workings by groundwater. At the same time, mines do not purchase electricity on the market, but consume it directly from the grid, causing debt to accumulate on the balancing market at the highest possible prices. "They cannot be disconnected. Therefore, as a result, they accumulate, accumulate, and accumulate the maximum amount of debt imaginable. Unfortunately, there is no solution right now," the expert noted.
Risk to Integration into the European Energy Market
The accumulation of debt on the balancing market, according to industry participants, creates additional obstacles for Ukraine's energy cooperation with the EU. Earlier, Olga Yevstigneeva, Head of the Ukrainian Renewable Energy Association, stated that without resolving the debt problem, Ukraine will not be able to fully integrate into the European energy market. Thus, the debt issue goes beyond an intra-industry dispute and becomes a factor influencing the prospects of the country joining pan-European energy mechanisms.
