Donbassenergo does not control the work of Starobeshevskay TPP from 21 March 2017 - official statement

Donbassenergo officially reports that from 21 March 2017 it does not control the work of Starobeshevskay TPP*, as well as part of the Company’s structural units located in the territory temporarily not controlled by Ukraine.

Donbassenergo officially declares that the Company has been and will be operating only within the legislative framework of Ukraine. To date, Donbassenergo has managed to ensure the operation of Starobeshevskaya TPP in strict compliance with the current legislation of Ukraine.

With a view to protecting the rights and freedoms of citizens of Ukraine and ensuring the national security, Decree of the President of Ukraine no. 62/2017 of 15 March 2017 enacted the Resolution made by the National Security and Defense Council of Ukraine "On urgent additional measures to counteract hybrid threats to the national security of Ukraine", which, until the execution of items 1 and 2 of the Minsk Package of Measures, dated 12 February 2015, as well as until the return of the seized companies to operation in accordance with the legislation of Ukraine, has imposed a temporary ban on the movement of goods across the conflict line within Donetsk and Lugansk regions.

On 15 March 2017, DTEK Group came out with an official statement about the loss of control over its companies located in the temporarily uncontrolled territory, including DTEK Donetskoblenergo, DTEK Power Grid, DTEK Energougol ENE, which were a party to electricity purchase and sale contracts with Donbassenergo made pursuant to Resolution of the Cabinet of Ministers of Ukraine no.263.

Inability to supply electricity to companies of DTEK Group and to support the work of Starobeshevskaya TPP, as well as the Company’s refusal to accept any actions that contradict the legislation of Ukraine have led to the actual loss of control over Starobeshevskaya TPP.

Donbassenergo has officially notified the state authorities of Ukraine about the loss of control over Starobeshevskaya TPP. At the same time, the Company will take all possible measures to protect the rights and lawful interests of Donbassenergo.

Donbassenergo is open to cooperation with the state authorities and companies of the Ukrainian energy sector aimed at the earliest resolution of the situation. The energy sector as a strategic sector of the Ukrainian economy should not be left without highly skilled professionals and powerful production facilities, mothballing or destruction of which would lead to irreparable economic, social and political consequences.

*As of 1 March 2017, Starobeshevskaya TPP employed 2,340 people. Since February 2017, Starobeshevskaya TPP has been operating five power units generating more than 19,000 MWh per day for populated areas located in the temporarily uncontrolled territory of Donetsk region and the territory controlled by Ukraine.
Starobeshevskaya TPP operates in the Regional Electricity Market in line with instructions given by the system operator of Donbass Electric Power System, a sub-division of NEC Ukrenergo public enterprise. Over the last year, the power plant produced more than 5 million MWh of electricity, while the level of payment collections for the supplied electricity remained critically low – less than 3%.
Since 2014 onwards, all the structural units of Donbassenergo re-registered their offices in the territory controlled by Ukraine. According to the performance results for 2014-2016, the amount of the Company's tax and other mandatory payments to the budget of Ukraine was over UAH 1.8 billion.