Photo from UNIAN
The "Rotterdam Plus delivery" formula is determined at trading on the Rotterdam stock exchange (the Netherlands), plus the cost of coal transportation to the domestic market.
The National Anti-corruption Bureau of Ukraine (NABU) says raids conducted on the premises of the National Energy and Utilities Regulatory Commission (NEURC) on February 14 were part of a criminal investigation into the possibility of abuse by the regulator's officials of their power when taking decision on introduction of the so-called "Rotterdam Plus" formula.
"Investigating this case, NABU detectives are faced with numerous obstacles, including on the part of NEURC. The latter conceals some of the documents that define separate components of the forecast calculation of the wholesale market price for electricity," NABU wrote on Facebook on February 14.
"Rotterdam Plus delivery" formula is determined at trading on the Rotterdam stock exchange (the Netherlands), plus the cost of coal transportation to the domestic market.
NABU reported that there was a distortion of information by certain individuals. It is about alleged expert findings, which deny the fact of causing damage to the state by the introduction of the formula. However, the size of losses within criminal proceedings is determined solely by forensic economic expertise, which can only be carried out by authorized state expert institutions.
As UNIAN reported earlier, on Thursday, February 14, NABU agents conducted searches at NEURC's offices.
NABU in August 2017 launched criminal proceedings under which NEURC former members are charged with acting in the interests of thermal power plants, which groundlessly used the artificially high price of coal in their power rates, the so-called "Rotterdam Plus" formula. The formula was behind exorbitant wholesale power rates at which the state-run enterprise Energorynok bought electricity from power generating companies.
NABU insists that NEURC's decision let the operators of the thermal power plants earn super profit, while consumers of electricity sustained groundless expenses.
The "Rotterdam Plus," or Rotterdam+, is a method of forming a price of a fuel cost component (coal) in power generation by thermal power plants in Ukraine. It was introduced in March 2016 and became effective in May 2016.
The introduction of the "Rotterdam Plus" formula was predetermined by the loss by Ukraine of its coal-producing area in Donbas after Russia unleashed war in the east of Ukraine.
Almost all coal mines producing anthracite consumed by most of Ukraine's thermal power plants are now located on uncontrolled territory.
Thus, to ensure Ukraine's energy independence, the government decided to buy coal on an international exchange in the Netherlands, which sells coal from South Africa and South America.
The new pricing formula was approved by NEURC. NEURC officials claimed that the measure would help Ukraine ensure energy independence and accumulate enough coal for a heating season.