Friday, December 5, 2014

Rejoice, Ukrainians: The New Minister Promises Many More Outages

Rejoice, Ukrainians: The New Minister Promises Many More Outages 

The Minister of Energy and Coal Industry of Ukraine Volodymyr Demchishin said today that rolling blackouts in the country will continue.
 

- As long as we can not balance the grid, we have no other choices - he explained. A schedule approved for a long time in all areas, on power companies displayed their consumption limits and, accordingly, graphics show outages. In this system, there is no manual control. It is not like some have been turned off, while others have  not, " added Demchishin.
 
Meanwhile, he has already taken the first steps to resolve the critical situation in the industry: according to the press service of the Ministry of Truth, Demchishin discussed it with US Ambassador Jeffrey Payette and the Head of the EU Delegation in Ukraine Ian Tombinski.
 
The Ministry plans to ensure stable operation of the energy sector and reform the industry someday, and encouraged enterprises to work the night shift. In the form of compensation Demchishin recommended that the National Commission on Energy Regulation, which he directed three days ago, to reduce in the coming days nightly rates for businesses. 

The US and the EU has only declared their readiness to support Ukraine and invest in the development of fuel and energy complex of the country, if it is subjected to the necessary IMF reforms in this sector. An application for solutions - they can't promise until the end of the week (?)maybe(?) At Least we finally gave "Gazprom"  a down payment for the purchase of one billion cubic meters of gas.
 
The experts in the energy market, while anxiously evaluating the actions of the new minister say he better improve the situation in the industry or risk losing his own future in this post . It is obvious that Demchishin headed the ministry at a bad time - the lack of gas, coal, blackouts, - says independent expert Vladimir Saprykin. Remember he has no professional education, He's an economist, not a techie, no experience in energy whatsoever, only in investment banking, his three months in the seat of the head of NERC does not count. 

Most likely, he really will not do and can not do anything so he will not last two months. Co-Chair of the Fund's energy strategies Dmitry Marunych believes that the knowledge and experience of the previous work permit Demchishin operated in "plugging financial holes", not solving the current power problems ( procurement of coal, gas, blackouts). On this is the fact that no success has been made. 

It, NERC, which was led by the then current Minister did not take any measures in order to solve the problem of financing public TEC and for timely procurement of coal - recalled Marunych. - Yes,the 600 million hryvnia they received, but in October, when it was too late to buy coal. I also think that he will lobby for the adoption of laws on the gas market and the energy market.

Ukraine was able to ratify the agreement on the Third Energy Package Europe. This is something he understands, with the work in the NERC. Although this ratification - is not guaranteed. 

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