04.06.2024
Russian War Against Ukraine: Energy Dimension | DiXi Group Alert – weekly review
May 27 – June 2
- On the night of June 1, the Russian occupiers carried out another missile and drone strike on Ukraine’s energy sector. Facilities in 5 regions were the targets of attacks.
- In particular, DTEK reported an attack on two TPPs (equipment significantly destroyed), Ukrhydroenergo – on two HPPs (critical damage, traffic temporarily blocked on the Dnipro HPP dam). Three critical infrastructure facilities were hit in the Lviv region.
- According to Ukrenergo, as of June 3, 404 settlements remained without electricity due to hostilities and technological disruptions.
- The power system experienced both a deficit and a surplus of electricity.The total duration of the restrictions lasted 34 hours or 20% of the week.
- Imports increased by 23% to 139.2 GWh compared to the previous week and were delivered from all available directions.
- The monthly Base BCM index for June was at 5,484.3 UAH/MWh (+65.9% compared to May).The Base DAM index increased to 4,136.0 UAH/MWh (+6.4% WoW).
- The Cabinet of Ministers extended the regulation on the Public Service Obligation (PSO) for electricity market participants until April 30, 2025 and set a single fixed price for household consumers at 4.32 UAH/kWh.
- At the same time, during the heating period, a preferential tariff for consumers using electric heating installations is provided at the level of 2.64 UAH/kWh (for those consumers with consumption during this period of under 2,000 kWh per month).
- The Cabinet of Ministers approved the Procedure for Determining and Applying Electricity Consumption Limits, which, among other things, defined critical facilities that must be provided with priority electricity supply.
- The Regulation on the peculiarities of electricity imports under martial law in Ukraine was also amended, which provides for the non–application of blackout schedules to enterprises that import 80% of their electricity consumption.
- The Regulator amended the Methodology (Procedure) for the formation of fees for connection to the transmission and distribution systems.
- Ukraine, represented by NEURC, became an official member of the Association of Issuing Bodies (AIB), which is a step to further recognition of the Ukrainian system of guarantees of origin of electricity.
- Ukrgazvydobuvannya JSC increased gas production by 10% in the first five months of 2024.
- Two alternative draft laws have been submitted to the Verkhovna Rada providing for the increase of excise tax rates on fuel to the minimum levels stipulated by Directive 2003/96/EC.
- Sweden will allocate 42.5 million EUR to the Ukraine Energy Support Fund, which will be spent on equipment (generators, transformers, etc.) and infrastructure restoration in 4 regions. Australia announced a grant contribution to the Fund in the amount of about 12.26 million EUR.
