Hot topics:

Who Will Be Court Favorite?

30 March, 00:00

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."

Newspaper output №:

№12, (1999)

Section

Economy