Joint efforts of Ukrenergo, the Ministry of Finance and the NEURC unblocked payments to the developers of the software for the new electricity market – Market Management System (MMS) platform.
Ukrenergo has already sent the major part of the debt payment ($1.430 mln) to the consortium of the developers (IP Systems Zrt, Smart Technologies and Siemens AG).
The contract for the software delivery for the balancing market and the ancillary services market (MMS platform) was signed in July 2018 as a result of the international tender. The whole contract is worth $8 mln. The project is financed within the framework of cooperation between Ukrenergo and the World Bank with Clean technologies Fund.
After the resubordination of Ukrenergo to Ministry of Finance, Ministry of Energy and Coal Mining refused to sanction payments on this contract. The debt reached $2 mln in the end of May 2019. In order to unblock payments, the Cabinet of Ministers of Ukraine with the assistance of the Ministry of Finance approved ammendmends to the Degree №70 from 27.01.2016 that enabled to appoint Ukrenergo instead of the Ministry of Energy and Coal Mining as a manager of credit funds of the World Bank. Afterwards, additional (subcredit) agreements to the contract for the software delivery and other documents were signed.
“Thanks to joint efforts of the government, the Ministry of Finance, the NEURC and Ukrenergo, the payments on the contract for the development of the software for the new electricity market has been unblocked. Of course, it’s sad that we missed some time, but we have reduced the risk of the delay of the MMS platform completion. We will be able to pay the remaining debt soon. I hope we won’t have any more problems with approving payment on this contract in the future, because it’s crucially important before the launch of the new market”, CEO of Ukrenergo Vsevolod Kovalchuk stated.