Centrenergo receives UAH 128 mln from state to repair damaged unit

Обзоры по компаниям и отраслям 26.06.2013 Ukraine’s Cabinet of Ministers granted UAH 128.3 mln to finance “primary reconstruction work” on Centrenergo’s (CEEN UK) Uglegorsk thermal power plant (TPP), which was damaged by fire on March 29. The funding will come from the state budget and should be spent by Dec. 27, according to the government’s June 19 decree. Earlier this month, the Minister of Energy outlined the reconstruction plans for Uglegorsk TPP (four power units of 300 MW capacity each). According to the plan, the least damaged power units #1 and #4 (with turbines and generators found in “satisfactory condition”) should be brought into operation in December 2013. The key focus in 2013 will be on repairing the station building (where the roof collapsed) and rehabilitating the control panels of the power units (which were also severely damaged). Power unit #3, whose generator (but not turbine) was found to be in good condition, is scheduled to be commissioned in March 2014. The most damaged power unit #2 is planned to be commissioned by the end of next year. The total reconstruction bill will be estimated by the end of June, according to the Energy Minister. Alexander Paraschiy: While the full recovery of Uglegorsk TPP by the end of 2014 looks too optimistic, we’re impressed that the state is eager to help with the timely financing of all repair work. This looks encouraging for Centrenergo, but not for the state budget: with the latest payment, the state has spent a total of UAH 185 mln to address the Uglegorsk disaster, which is close to all government proceeds from privatization, year-to-date. And that’s not the end of the story. Meanwhile, Ukraine’s electricity consumers are also contributing to help Centrenergo deal with its disaster: the power sector regulator approved a special surcharge to Centrenergo’s tariff to raise UAH 20.1 mln in May and UAH 19.1 mln in June to fully cover full salary expenses at Uglegorsk TPP.