Operation of Zmiivska TPP is suspended

In connection with the anti-terrorist operation in Donetsk and Lugansk regions there is a critical situation with fuel supply of thermal power plants of the power generating companies in Ukraine. In addition, due to the military operations in Donetsk and Lugansk regions numerous destructions and damages of electrical networks and infrastructure, property and equipment of coal mines, transportation infrastructure occurred, which in turn limits the proper functioning of the mining sector in the region and shipment of coal to thermal power plants.

Considering the actual situation with fuel supply and coal stocks available at TPPs and following the agreement with the system operator, the electricity production was stopped at Zmiivska TPP from 11.09.2014 to 01.10.2014.

During this period there will be accumulation of fuel stocks for continuous operation during the autumn-winter period 2014-2015. Currently we are searching for the ways to diversify the suppliers of energy fuel, including foreign ones (South Africa, Brazil, Chile, etc.).

Given the temporary stoppage of the thermal power plant, the Company has no plans to reduce the staff. Instead, there are developed measures to preserve the staff during the period of cutback in electricity and commodity products supply.
During TPP stoppage and its standby time all technical measures will be taken for conservation of the power units' operating and backup equipment and the team that provides TPP vital functions. Also the repairing works will be carried out according to the schedule.

Under conditions of the complete power plant stoppage the costs to maintain its viability, the so-called semi-fixed costs, will be formed as labor costs, auxiliary power consumption, cost of repair materials, etc. To compensate for these costs for the period of accumulation of the coal stocks, the Company addressed to the Ministry of Energy and Coal Industry, National Electricity Regulation Commission (NERC) with requested to establish an extra charge.

As for the start-up costs, according to the current rules of the Energy Market, they will be reimbursed to the Company in full.