The National Security and Defense Council (NSDC) is ready to introduce temporary state administration at eight regional energy companies if their monopolies threaten the energy market, NSDC Secretary Oleksiy Danilov said on July 30.
“We see signs of monopolization in this market,” Danilov said during the briefing, “and in the event of a threat to national security under this decision, we are considering the introduction of temporary administration.”
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.
Among those mentioned are oligarchs Ihor Kolomoisky, Hennady Bogolubov, Rinat Akhmetov, lawmakers Hryhoriy Surkis, Sergiy Lyovochkin and Yuriy Boyko, representing the pro-Kremlin 44-member Opposition Platform – For Life faction.
The Russian businessmen, mentioned by Danilov, are Konstantin Grigorishin and Mikhail Voevodin.
Danilov said that sanctions could be introduced if the energy suppliers have indeed posed a threat to the market.
On July 2-4, electricity prices crashed because of falling demand from electricity buyers who wield significant market power, including the company D.Trading, which is part of oligarch Akhmetov’s energy conglomerate DTEK.
The price of electricity in the day-ahead market decreased by 70% compared to July 1.
Akhmetov has been accused by the state of meddling with the electricity market for personal gain.
On July 5, the National Energy and Utilities Regulatory Commission ordered the country’s grid operators to buy enough electricity on the day-ahead market to compensate for the losses.
The regulator and the Antimonopoly Committee opened a probe into potential economic competition violations following the event. Now, the NSDC has threatened to go even further, temporarily taking hold of energy tycoons’ energy companies.
