Director of 'Cherkasyteplokomunenergo' Pavlo Karas: Heat Suppliers Are Not Beggars Asking for Cheap Gas

Pavlo Karas, the director of the municipal enterprise 'Cherkasyteplokomunenergo', recently gave an interview to the Interfax-Ukraine agency as part of the 'Energy Reform' program, where he addressed the current situation regarding gas supply for electricity generation. As of April 1, the Ukrainian government amended Resolution No. 222, abolishing preferential gas for electricity producers and limiting it to frontline areas for six months. In light of this, Karas's enterprise announced the suspension of its cogeneration plants and the halt of electricity generation.

Karas explained, 'We received natural gas under special obligations (PSO) according to two resolutions of the Cabinet of Ministers of Ukraine: No. 812, which provided us with gas for heat production, and No. 222, which ensured gas for electricity generation. Now, our ability to purchase any gas for electricity generation has been cut off. We cannot use gas allocated for heat production to generate electricity for sale on the market due to a direct prohibition in Resolution No. 812.'

He also emphasized that purchasing gas for electricity generation is impossible due to the lack of a purchasing mechanism. 'Therefore, we had no choice but to stop cogeneration. However, it is important to note that the cogeneration plant operates in two modes: for heat and electricity production. Currently, we are forced to operate on a gas boiler, providing heat to the city's budgetary institutions and hot water to Cherkasy residents. But the boiler cannot produce electricity,' he added.

Karas pointed out the paradoxical situation: 'We have been forced to stop producing electricity, which was generated simultaneously with heat, yet our gas consumption has not decreased.' He highlighted that the government's logic, which aims to conserve natural gas, does not apply to heat suppliers, as they cannot reduce gas consumption without generating electricity.

'Clearly, the government’s logic is that with the start of the heating season, you will begin producing heat and, at the same time, electricity. But when cogeneration piston machines sit idle all summer, we will end up with scrap metal,' Karas noted. He emphasized that the conservation of cogeneration plants is an expensive process, and not all municipal enterprises can afford the costs associated with it.

The director of 'Cherkasyteplokomunenergo' also stressed that the government must urgently rectify the situation. 'We do not have problems with financing electricity production, as it is a profitable activity. However, for TKE to purchase gas on the market, a change of supplier is necessary, which will lead to the loss of preferential gas for heating the population and budget institutions,' he explained.

Karas called for the establishment of fair conditions for heat suppliers in the market. 'The state previously regulated the gas price for TKE, but now it has imposed stricter regulations on electricity pricing, making electricity production economically unviable,' he added. He also emphasized that heat suppliers are ready to operate under market conditions, but only under clear and fair terms.

Karas noted that theoretically, the gas code allows for having two suppliers, but in practice, this is a complex mechanism that has not yet been implemented in Ukraine. 'It is urgent to correct the mistake and establish a procedure for heat and communal energy enterprises to obtain natural gas for electricity production,' he concluded, underscoring the importance of this issue for the stability of enterprise operations and the provision of heat and electricity to the population.