Centerenergo has paid UAH 500 million a month to the mines

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Centerenergo has paid UAH 500 million a month to the mines

30.04.2021 News

Centerenergo has paid more than 475 million hryvnias to the mines since the beginning of the month and has no debts, according to the company’s website.

As you know, Centerenergo – the only consumer of coal from state-owned mines, buys almost the entire volume of their production under direct contracts.

“However, the current purchase price of coal – UAH 1,650 / t – does not allow PJSC Centerenergo to reach the level of profitability. PJSC Centerenergo is forced to compete with private heat generation companies, which allow their own mines to produce at a competitive cost,” the statement said.

In this regard, Centerenergo proposes to create a vertically integrated company by merging Centerenergo with promising state-owned mines and attracting sufficient investment for their modernization.

It is noted that such a model will make Centerenergo attractive to potential investors in the future privatization, as well as create opportunities for miners, timely payment of wages and solving social problems of mining teams.

A working group has been formed on the basis of Centerenergo to study the possibility of creating a vertically integrated company.

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