The National Security and Defense Council (NSDC) is threatening the energy companies with state control, if they monopolise the energy market.
According to Kyiv Post, the National Security and Defense Council of Ukraine is ready to introduce “temporary state administration” of the energy companies, should their monopolies threaten the energy market.
“We see signs of monopolization in this market,” NSDC Secretary Oleksiy Danilov said during a briefing according to Kyiv Post, “and in the event of a threat to national security under this decision, we are considering the introduction of temporary administration.”
The companies in question are regional energy companies who control the electrical grids. According to Danilov, the companies are owned by oligarchs such as Ihor Kolomoisky and his associate, the oligarch Hennady Bogolubov and of course Rinat Akhmetov, the oligarch behind DTEK and one of the most powerful people in Ukraine.
In addition to that, stated Danilov, also pro-Kremlin lawmakers like Yuriy Boyko are owners of these companies, as are the Russian business men Konstantin Grigorishin and Mikhail Voevodin.
The regional energy companies control the the electrical grids. According to Danilov, the companies in question are owned by oligarchs, pro-Kremlin lawmakers and Russian businessmen.
Ukraine has had severe problems with the electricity market since July, where the day ahead energy market crashed. This sparked an investigation by the anti-monopoly committee of Ukraine. The probe is one thing, but NSDC is threatening with taking over the companies and imposing sanctions – a step up the ladder.
Few people with a lot of money have the power to manipulate the Ukrainian energy prices at will. This is mostly because the Ukrainian electricity system is not connected to the European market.
The consequence of this is, that Ukraine does not have the same access to a energy market where prices are more floating but also more stable, because the overall amount of energy buzzing around on the European market is so large, the market is also more stable.
Joining the electricity market is one of the things on the Ukrainian state’s to-do list and work is under way to connect to the market, even though some have interests in remaining shut off from the outside market, namely DTEK and Akhmetov as they will be able to a large extent to set the prices on energy, which is favourable when they also produce – by far – most of Ukraine’s energy.