Ukrenergo actively negotiating with ENTSO-E to join ITC mechanism to compensate export costs

MOSCOW. Aug 1 (Interfax) - Ukraine's Ukrenergo is actively working with the European Network of Transmission System Operators for Electricity ENTSO-E to speed up the company's accession to the Inter-Transmission System Operator Compensation or ITC mechanism, which will allow exporters not to pay a transmission fee when exporting electricity, Ukrenergo CEO Volodymyr Kudrytsky said.

"We are now in talks with ENTSO-E for them to connect us to this ITC mechanism as soon as possible, because it turned out that we synchronized before joining this mechanism. This week there will be several conversations with the management of ENTSO-E to speed up this process," Ukrainian media quoted Kudrytsky as saying.

He said Ukrenergo had everything to gain from this as Europeans actively used its networks for electricity transit and, accordingly, the company will receive additional funds.

"Then there will be no transmission fee for export, there will be a common pool that will be collected by all neighboring operators for using networks, and this pool will be distributed among them in accordance with whose networks the most electricity passed through," Kudrytsky said.

He said that according to the latest decision of the Supreme Court of Ukraine, exporters have to pay for the transmission of electricity when exporting it.