ASSESSMENT OF THE COMPETITIVE ADVANTAGES OF UKRAINIAN ELECTRICAL POWER INDUSTRY

Abstract

The article analyzes the current state and prospects for further development of competitive advantages of the Ukrainian electrical power industry. The historical way of development of competition in the electrical power sphere of economics of Ukraine is provided, as this branch gradually, together with realization of market reforms in the state, turned from state monopoly into competition of big economic associations, complexes, companies. The purpose of the article is to reveal the main factors and trends that affect the current state and prospects for further development of competitive advantages of the Ukrainian power industry. The domestic electricity market of Ukraine consists of generating companies which include APS, TPP, CHPP, HPP, RES, as well as electricity distribution companies (oblenergo) and electricity networks. All these types of electricity producers, with the exception of nuclear power plants, have private capital, resulting in competition. The same happens with regional electrical power and electricity networks. The legislative principles of the state policy on the electricity market are analyzed. It is emphasized that there is almost no competition in nuclear energy. Here the state owns 100% of the property, namely in the state enterprise NNEGC Energoatom. The only sphere with competition is the purchase of nuclear fuel. Until recently, there was a monopolist - Russia. At the end of September 2020, the American-Japanese nuclear fuel producer Westinghouse and the Ukrainian NNEGC Energoatom signed an agreement that envisaged the supply of fuel elements of Western production. As a result, according to the financial plan in 2020, the state-owned enterprise NNEGC instead of the planned income in the amount of UAH 1.6 billion received less. Attention is drawn to the fact that according to the Law "On the Electricity Market", from July 1, 2019, the market that is unhindered in terms of competition should start operating for all generating companies without exception. At the same time, state intervention in Energoatom's activities led to the company's net losses in 2019 amounting to UAH 4.8 billion. Next, the situation that has developed on the market of thermal power is analyzed. Here the monopolist is the “Donbass Fuel and Energy Company Energo”, which generates a quarter of Ukraine's electricity from the state-owned “Centerenergo”, which is controlled by the state. Public Joint Stock Company Donbasenergo is also represented at this market. However, the reasons that caused a significant crisis in the market of thermal power generation due to competition are investigated. The competition in hydropower, at the enterprises of renewable energy sources, regional power and electricity networks is investigated.