Struggle heats up between government and regions for the title of the main
energy trader
By Iryna HAVRYLOVA, The Day
The government is urgently developing a new electricity supply scheme providing
a one-channel mechanism to deliver electricity to customers, Deputy Economy
Minister Vrubliovsky told Interfax-Ukraine. According to him, this scheme
has been constructed in such a way that "one energy trader will deal with
the customer, while the others will be the links in his service chain.
In other words, other energy traders (currently numbering 15) will be subcontractors
of the main energy supplier." Obviously, the struggle over the honor of
being energy trader number one is heating up. It is now clear that this
title is far more advantageous and prestigious than that of "party of power".
However, President Kuchma's personal support is required, which neither
the government nor regions have enough of. On the one hand, the President
spoke much and long at the Zlahoda (Harmony) conference about decentralization
of power and the priorities of the regions, on the other hand, this same
day in the Crimea he announced his conviction that "there will be no government
dismissal."
Each side has its trumps and its capabilities. The government is employing
its old, time-tested methods of coercion: a special commission headed by
Deputy General Prosecutor Kolinko is examining the causes of non-payments
in the electric power industry. And Mr. Pustovoitenko has already reported
to the President on a transparent scheme to supply energy "directly through
the NEC (National Electricity Company), leaving out dealers", which is
currently being prepared for adoption. In their turn, regional interests
also have something up their sleeve: now they are refining the law On Energy
Market Operating Basis, said Oleksiy Kucherenko, Regional Revival Faction
Cochairman. As a result, all efforts by the government will most likely
come to naught. According to available information, Parliament is ready
to adopt this law. Another important regional argument for the President
is a way of meeting the state budget deficit. It will not be too difficult
to convince the President that giving the Cabinet the possibility to administer
and control the energy market would reduce allocations to the budget, while
the President thinks that "the issue of settlements for electricity and
social payments has a political character."






