Metallurgical companies don’t agree to forgive energy companies for delays

For the first time, major steel companies have tried to block the decision of the Government and regulators, that are ready to forgive the energy sector with the late launch of new generation units. As the Kommersant has got to know, consumers didn’t sign the additional agreement to the contract for the supply of power, allowing the Russian-Chinese joint venture of TGK-2 and Huadian to postpone the launch of a heat and power station in Yaroslavl to the end of 2016. Steelmakers are not willing to forgive the joint venture penalties that exceed 1 billion rubles, and would prefer to give up the construction of the heat and power station in principle.

Investors of the building the Huadian-Teninskaya heat and power station in Yaroslavl – joint venture of TGK-2 and Chinese Huadian – may not to receive a consistent postponement of the station launch. In October 2015, the Government approved the postponement of the heat and power station launch, which is built on power delivery contract, from December 31, 2013 to December 31, 2016. Last December, the decision to postpone the joint venture’s obligations was also approved by the Supervisory Board of Market Council (energy markets regulator), but the change of the power delivery contract itself requires additional agreement, signed by all suppliers and consumers of the wholesale energy market. Market Council held the subscription campaign last week, and the organization received formal waivers from four companies - NLMK, Severstal, Evraz and Metalloinvest, the Kommersant’s source in the energy industry reported and two source of the Kommersant in the steel industry confirmed.