Naftogaz creates a special division for managing CHPs

The new division wll operate the CHPs controlled by Naftogaz Group

Naftogaz Group has created a new Heat Energy business division for managing CHPs taken over from the State Property Fund of Ukraine, namely the CHPs in Novoyavorivsk and Novyi Rozdil (Lviv region).

Vitalii Shcherbenko, current Naftogaz Group director for energy efficiency and asset management, has been appointed as head of the newly created division.

“We have been controlling CHPs in Novoyavorivsk and Novyi Rozdil for a year. During this period, we have demonstrated that facilities like this can and should be managed effectively. Last year, we not only managed to supply heat to households in record short time and save the heating season, but also performed current maintenance of heat supply networks. We saved the centralized heating systems of these two towns. The creation of a separate Heat Energy business division proves that we seek to manage the CHPs we are responsible for as effectively as possible and plan to further develop them within the transformation of the Group,” said Vitalii Shcherbenko.

When Naftogaz took over the CHPs in Novoyavorivsk and Novyi Rozdil, the debt generated by the previous managing company amounted to UAH 700 million. Workers had not been paid for six months and payments for heat supply had not been collected from customers in Novyi Rozdil.

In October 2020, the heating season began on schedule for the first time over the past three years and wages were paid to employees on time. Payments by the CHPs for gas supplied under PSO terms amounted to 97% of the amounts due. Naftogaz also improved relations with customers. The collection rate for heat supply to households is currently at 86% and continues to grow.

The new division will operate the CHPs controlled by Naftogaz Group. It will participate in the development of an optimal management system and staffing of these enterprises; design a strategic development plan for them; control the process of maximizing financial performance and compliance; and coordinate their cooperation with executive bodies, the regulator, and other stakeholders.

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