Kyivenergo pays Hr 742 million debt to Naftogaz for gas

Public joint-stock company Kyivenergo, which exploits Kyiv's energy complex, has paid off a Hr 742,128,522 debt for natural gas consumed for the production of heat for households, the press service of the energy company reported on Wednesday, Aug. 1.

The press service said that the debt was paid when Kyivenergo obtained funds on July 31, 2012 from Kyiv city administration to compensate for the difference in heat production cost and existing heat tariffs.

Thus, the company's debt for gas supplied for the production of heat fell to Hr 1.8 billion. The debt to Kyivenergo for compensation of the difference in the tariffs as of August 1, 2012 narrowed to Hr 2.7 billion.

"We hope that thanks to the payment of at least a part of the debt for gas, the situation with the restriction of gas supply, as seen recently with pump storage power plant 6, will not be repeated in the near future. However, the rest of the uncompensated difference in the tariffs and the debt to gas suppliers does not give us long-term guarantees of further stable gas supplies," reads the report, citing Kyivenergo CFO Tetiana Hriaznova.

As reported, Kyivenergo on July 23 failed to resume hot water supplies after pipeline tests in some areas of Dniprovsky, Desniansky and Obolonsky districts in Kyiv due to the restrictions on the gas supply to pump storage power plant 6. Hot water supplies were resumed only on July 30, 2012 when the company obtained additional limits of natural gas for pump storage power plant 6.

Kyivenergo operates almost all power facilities in Kyiv with the exception of the Darnytsa heat and electricity station. The company increased electricity output in the first half of this year by 3.7% year-on-year to 2.843 billion kWh.

Private energy holding DTEK owns a 71.82% stake in Kyivenergo. National JSC Energy Company of Ukrainian holds 25% plus one share.