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ADDRESS BY ENERGOATOM
ACTING PRESIDENT
NON-FINANCIAL REPORT 2019

Ladies and gentlemen,
dear colleagues and partners!

The top priority for Energoatom as the operating organisation is to ensure reliable, efficient, and, most importantly, safe operation of nuclear power plants for the sustainable development of Ukraine’s economy and the welfare of the Company’s employees and all Ukrainians. Thanks to the daily work of Energoatom, millions of Ukrainians enjoy light and vital electricity in their homes, and the industries have electricity at competitive prices.

Ensuring the safe production of clean and cheap electricity, we pay the most attention to the condition of the powerhouse equipment. That is why we repair the power units at our NPPs strictly according to the schedules, as well as elaborate and implement the safety measures assiduously. Energoatom fully complies with all detailed safety improvement measures, an effort vital for the smooth and failure-free operation of Ukrainian NPPs. Dedication, integrity, and professionalism. These are qualities of nuclear industry workers that are particularly valuable, because they guarantee the energy security of the country in these difficult times.

Energoatom operates 15 nuclear power units with a total installed capacity of 13,835 MW. The Company’s focus areas are not only the safe operation and efficiency of power units to ensure uninterrupted supply of electricity to the households and industries, but also new build projects to ensure economic development and energy independence for future generations. Today, our Company has such capacities indeed. Highly skilled personnel, in-house engineering support, service and repair departments enable us to look confidently into the future and plan the construction of new power units at our NPPs.

Committed to the highest nuclear and radiation safety, we are fully aware of our responsibility and do everything we can to ensure that the Ukrainian nuclear industry remains the backbone of the domestic energy and economy. We are implementing the Complex (Consolidated) Safety Upgrade Programme of Power Units of Ukrainian NPPs and cooperate on an ongoing basis with international associations and organisations: the International Atomic Energy Agency (IAEA), the World Association of Nuclear Operators (WANO), the World Nuclear Association, and EUR Group. Their numerous audits have repeatedly confirmed the high level of safety at Ukrainian NPPs.

Like all other types of electricity generation, the nuclear industry started operating in a new electricity market in summer 2019. This has become a serious challenge for the nuclear sector, as the flawed market operation and regular defaults on payments for the supplied electricity have rapidly led to the accumulation of debts to nuclear power plants. As a result, the financial position of the Company has deteriorated. Nevertheless, Energoatom remains the backbone of the nation’s energy stability and continues to supply electricity to the households at the lowest rates under the PSO mechanism and buttress the Ukrainian economy by supplying cheap and clean electricity to manufacturers.

To overcome the energy crisis, the Company continues to make proposals that will help balance its financial and business operations as soon as possible and ensure proper functioning of a truely competitive and profitable electricity market offering the level playing field to all players. In doing so, we enjoy the support of the members of the Verkhovna Rada of Ukraine, ministers, and the President. According to the Law of Ukraine On the Use of Nuclear Energy and Radiation Safety, the operating organisation shall have financial, material, and other resources to maintain the high safety, and the government’s objective is to create the enabling environment for the Company to obtain these resources.

Since the global coronavirus pandemic broke out, Energoatom has been responding quickly to the epidemiological situation by implementing unprecedented measures to minimise the spread of COVID-19 among employees.

In particular, the Company’s subdivisions have introduced a strict cleaning and disinfection policy, strengthened control over the health of employees when they go through access control points, and conducted daily monitoring of all acute respiratory disease incidences. The majority of staff switched to teleworking and cancelled offline events, preferring audio and online format instead. With this quick response, we have minimised the incidence rate among employees and avoided the contraction of the disease by critical personnel directly responsible for the operation of power units and nuclear safety.

Today, our key objective is to turn around as soon as possible. We have started selling electricity in the bilateral agreement market to industrial consumers and intensified important investment projects, including the resumption of programmes to complete power units No. 3 and No. 4 at Khmelnytska NPP. In the future, the new build projects will not only generate additional billions of kilowatts for the domestic grid, but will also help the national economy to create about 100,000 new jobs. We must go to great lengths to secure that the nuclear industry continues its development, the households and industries receive affordable and environmentally friendly electricity, and the nuclear power sector employees enjoy competitive pay.

Energoatom has always been a pillar of the national economy. Hopefully, we will soon become a role model of successful transformations of an outdated state-owed company into a modern high-tech company and a European leading producer of safe and clean electricity that operates to the benefit of our country and secures the sustainability of Ukrainian economy, higher welfare of our fellow citizens, and social protection of our employees.

PETRO KOTIN,

acting President of Energoatom