““Ukrhydroenergo” approved the financial plan for 2025 according to the new rules. Why is this important?”, — write: epravda.com.ua
Ukrhydroenergo became the first state-owned company in Ukraine to approve a financial plan for 2025 under the new rules. This is a very important decision that will help not only the company, but also the economy of Ukraine, energy and people. Why is it important for the country? The new rules allow supervisory boards to approve financial plans. This makes the management process faster and more transparent. Thanks to this, state-owned companies can work better, attract investments and quickly restore infrastructure. Read also: How to get better income from state assets without mass privatization For example, “Ukrhydroenergo” already has a plan that includes modernization of old stations, construction of new facilities and implementation of large-scale investment projects. The prospectus for 2025 specifies that the company plans to restore destroyed facilities, protect critical infrastructure facilities and complete the construction of the lines of the Dniester and Kaniv HPPs.Advertisement: What does this mean for the energy industry? “Ukrhydroenergo” plans many large projects, such as the reconstruction of hydroelectric power plant equipment and the introduction of modern technologies. The Letter of Expectations also states that by 2027, the company’s profit is forecast at the level of UAH 24.4 billion thanks to the cancellation of PSO (assigned special duties) and optimization of operational processes. PSO is a mechanism thanks to which the price of electricity for the population remains lower than the market price. “Ukrhydroenergo” is one of the two companies that compensates for this difference, spending billions of hryvnias every year. Such a system supports the availability of electricity for citizens, but also requires significant resources from the company. In addition, the company will invest in the modernization and development of energy facilities, which will increase the stability and efficiency of the energy system. Advertisement: How does this affect Ukrainians? For citizens, this means a stable supply of electricity, access to renewable energy and protection of critical infrastructure. Thanks to reforms and the gradual cancellation of PSO, these funds will be able to be directed to the modernization and development of the energy infrastructure. One of the important points of the Letter of Expectations is to ensure the company’s social obligations, such as supporting employees and creating new jobs. Wartime conditions emphasize the importance of these decisions to maintain the reliability of the power system and the safety of citizens. Why are other countries already doing this? Similar reforms are already underway in Norway, Sweden and Singapore. For example, in Norway, the Equinor company adheres to clear management rules and therefore works successfully in global markets. Sweden has focused on innovation, while Singapore combines control over public assets with transparency. Ukraine can learn from these examples to become stronger. What has changed? Previously, the financial plans of state-owned companies took a long time to be approved, and this prevented rapid development of projects. Now the process has become simpler and clearer. The owner’s expectation sheet, for example, for Ukrhydroenergo, defines clear financial, operational and non-financial goals. For example, the company must ensure the annual volume of electricity production at a level of at least 9,076.5 million kWh and implement an investment plan of at least 85% of the approved level. The decision of “Ukrhydroenergo” shows that the reforms are beneficial. Other public companies can also take advantage of these changes to attract investment, grow and improve people’s lives. Such steps make Ukraine stronger and closer to world standards.