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  • METALWORKERS DEMAND FROM UKRENERGO TO EXCLUDE COSTS OF GREEN TARIFF COMPENSATION FROM TRANSMISION TARIFF

    Representatives of Nikopol and Zaporizhzhya ferroalloy plants, Pokrovsky mining processing plant and other metallurgical enterprises demand to exclude or significantly reduce the costs for compensation of the expenses of SE Guaranteed Buyer for the purchase of RES generation at the “green” tariff in the structure of the tariff for transmission of electricity. Representatives of these enterprises have been holding rallies for two months at the central office of Ukrenergo. They announced this on September 23 during open discussions on the draft Ukrenergo tariffs for electricity transmission and dispatching (operational and technological) management for 2020.

    Volodymyr Kudrytskyi, First Deputy Chairman of the Board of Ukrenergo, remarked that the current law “On the Electricity Market” clearly obliges the company to fulfill its obligations to compensate for RES expenses.

    “We can discuss the model and the feasibility of supporting the “greens”, sources of compensation for the green tariff, etc. as much as we like. However, there is a clear legislative requirement that we must follow. Therefore, even if we exclude the compensation costs for the “green” generation from the transmission tariff structure, Ukrenergo will still receive a bill from SE Guaranteed Buyer for the service of RES development. Besides, we will still have a legal obligation to pay for this service,” said Mr. Kudrytskyi.

    Andrii Nemyrovskyi, Deputy Chairman of NPC Ukrenergo, explained that while drafting tariffs, Ukrenergo, like other enterprises, follows the Law of Ukraine “On the Electricity Market”. According to the logic behind this document, there should be some entity to bear the cost of society being able to use “green” electricity that contributes to the preservation of nature.

    “That is why the Verkhovna Rada has chosen the transmission tariff as a tool for this. That is, the use of electricity from RES is socialized through all consumers who pay for it, including metallurgical enterprises. Ukrenergo cannot even initiate a change to legislative approaches, so this issue is to be addressed to politicians. In our turn, within the current legislation we are looking for all available ways to reduce the burden on our tariff. It is important for us to ensure the operational security of the grid, to comply with the legal requirements and to optimize the price of electricity,” said Nemyrovskyi.

    Ukrenergo‘s Chairman Vsevolod Kovalchuk and other top managers met twice with representatives of trade unions of metallurgical enterprises, and directly with their heads. Vsevolod Kovalchuk also held a joint press conference with directors of enterprises to help them convey their position to the general public.

    Ukrenergo suggested that metallurgists should come to a common position on changes to the mechanism of imposing special obligations to compensate for the “green” tariff and to find ways to optimize the costs of enterprises for the purchase of electricity based on their consumption profile. However, Ukrenergo has not seen a single attempt from the metallurgists towards resolving this issue.

    Andrii Nemyrovskyi and Volodymyr Kudrytskyi have once again called on the protesters’ representatives to cooperate on this matter.

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