The electricity market in Ukraine is facing a significant crisis due to systemic debt among its participants, which is disrupting financial transactions and creating a substantial financial gap in the sector. This situation has left electricity producers without payment for the energy they supply, exacerbating the ongoing crisis.
According to industry experts, a considerable amount of debt has accumulated not only within the system operator but also among protected consumers, such as coal mines, water utilities, and other enterprises that cannot be disconnected from the grid.
“As a result, electricity producers are unable to receive their payments because the market is not functioning due to the debt crisis,” stated Savitsky.
This financial shortfall means that energy generation companies are not compensated for the electricity they have already provided, leading to growing financial instability and a decline in investor confidence.
Earlier, the state-owned company Ukrenergo reported that producers are facing delays of up to 16 months in receiving payments for the electricity they supply.
Industry organizations and experts have repeatedly warned about the risks posed to the energy system by debts in the balancing market. The Federation of Employers of the Fuel and Energy Complex of Ukraine has indicated that the crisis is directly impacting generating companies.
A statement from the All-Ukrainian Energy Assembly emphasizes that the debts in the balancing electricity market are adversely affecting the stability of the energy system during wartime and are deterring potential investors.
The ongoing debt crisis in Ukraine's electricity market is severely disrupting financial transactions, leaving producers unpaid and threatening the stability of the energy sector. This situation has raised alarms among industry experts regarding its implications for investor confidence and the overall resilience of the energy system during challenging times.