On November 10, the Center for Public Analytics 'Bezha' held an expert online discussion between Valeriy Kloсhuk and economist Oleh Penzen, focusing on corruption in Ukraine’s energy sector, its impact on pricing, and the role of European reforms in transforming the market.
The large-scale operation by NABU and SAP aimed at exposing money laundering schemes in the energy sector totaling over $100 million was discussed. According to Penzen, the main corruption mechanisms are simple: dummy companies win tenders, kickbacks from contracts, prices are inflated after agreements are signed, and work is often not fully completed. State control and politically motivated appointments of top management in state monopolies complicate the situation.
Special attention was given to the pricing in nuclear energy. The expert emphasized that atomic energy cannot be considered the cheapest due to unaccounted investments in the restoration and safety of facilities. State subsidy programs set electricity prices for all citizens, regardless of wealth, raising questions about the fairness of such policies.
The second part addressed the influence of the EU’s third energy package on market division. It was noted that formal competition among monopolists in electricity transport and distribution does not solve transparency problems and only increases consumer costs. Overall, the experts concluded that without fundamental change, the situation with corruption and pricing will remain unchanged.
