You're reading: DTEK denies distortion of costs for electricity generation by Vostokenergo TPP

There is no distortion of facts in the calculations of costs for electricity generation by the thermal power plants (TPP) of DTEK Vostokenergo, DTEK energy holding has said.

According to DTEK, since 2001 Vostokenergo, which operates the Luhansk, Kurakhove and Zuyivska TPPs, has been providing information about the costs for electricity production according to the requirements of the NCER.

“DTEK operates within a legal framework and strictly complies with the legislation. We consider it inadmissible to manipulate figures and distort information on the part of the NCER government regulator,” DTEK Energo CEO Vsevolod Starukhin said.

The energy holding believes that the attempt to recalculate rent payments for four years from the hryvnia to the dollar and back led to the distortion of the sum: the NCER overstated its value by 2.5 times.

“There is fact of financial statements distortion by DTEK. All energy companies include in their costs either amortization of their own equipment or payment for leased equipment. The cost of equipment rent at the Vostokenergo TPP is equivalent to the fair assessment of depreciation of that property. Vostokenergo rents equipment therefore uses payments for rent rather than depreciation in calculations,” Starukhin said.