By KYIV. Nov 30 (Interfax-Ukraine) – The National Energy and Utilities Regulatory Commission of Ukraine (NEURC) has launched an investigation into the activities of D.Trading LLC, JSC DTEK Dniproenergo, JSC DTEK Zakhidenergo and DTEK Skhidenergo LLC for violations of legislation in the electricity market.
"To start an investigation into violations of the law on the electricity market functioning, signs of which are contained in the actions of D. Trading LLC, JSC DTEK Dniproenergo, JSC DTEK Zakhidenergo and DTEK Skhidenergo LLC for the period from August 1, 2022 to September 30 2022," the relevant regulation of the regulator, adopted at a meeting on Tuesday, states.
As follows from the National Commission’s justification to the document, in August-September 2022, D.Trading bought electricity from DTEK Dniproenergo, DTEK Zakhidenergo and DTEK Skhidkenergo under bilateral agreements at significantly lower prices than the weighted average selling prices of other manufacturers based on the results of electronic auctions.
At the same time, according to the regulator, D.Trading, forming from 46% to 67% of the total demand for electricity in the day-ahead market (DAM), influenced the price in the DAM in the direction of its increase.
"As a result, the weighted average prices in the DAM were formed in a much higher amount compared to the prices for electricity sales by its producers based on the results of electronic auctions," the NEURC stated.
As follows from the justification to the resolution, the information published in the regulator’s memo and the analytical materials attached to it on the actions of D.Trading, DTEK Dniproenergo, DTEK Zakhidenergo and DTEK Skhidkenergo indicates possible signs of manipulation and abuse in the electricity market.
In turn, DTEK was assured of strict compliance with the requirements of Ukraine’s current legislation, including legal acts regulating activities in the electricity market.
"Enterprises of DTEK Group always buy and sell electricity at market prices. Their formation is transparent and fully meets the requirements of the procedure approved by the Cabinet of Ministers. The formation of the price in the DAM is determined solely on the basis of the balance of supply and demand. This principle excludes the possibility of any participant’s influence on pricing," the company noted in a commentary to Interfax-Ukraine.
"DTEK Group expects a comprehensive consideration of the case, taking into account the positions of the involved companies, and the subsequent impartial conclusion of the regulator," the press service added.
