If you look at the map of the coal-generated electricity in Ukraine, the biggest share is attributed to companies owned by Rinat Akhmetov’s DTEK. Basically what we are dealing with is a monopoly in the energy market, which hurts the country’s energy security, damages the environment, causes uncalled for health expenses and leads to breaches of international obligations.
Who is to blame?
• The National Anti-Monopoly Committee, which has failed to see the monopolization of the energy market, which has been ongoing for a decade at least!
• The National Asset Management Fund, which has failed to see DTEK’s non-compliance with the terms and conditions of the privatization agreements of the power plants.
• The failure of the courts and whole government establishment to push back against oligarchs and coal barons who now hold Ukrainians and Europeans hostage to toxic emissions from outdated coal plants.
What is to be done?
• The monopoly must be broken down.
• A coal phase-out program must be in place, with a robust strategy and infrastructure for its implementation. This measure is the most realistic.
• DTEK must be brought to compliance with the sale-purchase agreement conditions, whereby they were to install filters on all their power plants by 2015. However, this is unrealistic mainly because DTEK understands that it is cheaper for it to give the used-up Soviet-era “assets” back to the state rather than comply. And once back in government hands, the coal power plants become the problem of the government.
There are national-level solutions: A strong determination to get rid of oligarchic influence, political will, transparent and strong courts.
There are also international-level solutions: Turn to international partners for help. Ukraine needs sanctions against oligarchic groups who pollute Europe and Ukraine and investigations into the flows of dirty coal money into Europe.
Lesia Vasylenko is a member of the Verkhovna Rada, Ukraine’s parliament, with the 20-member Voice faction.
