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  • Ukrenergo transfers another 250 million UAH to the account of the Subsidiary Enterprise Guaranteed Buyer

    Ukrenergo transfers another 250 million UAH to the account of the Subsidiary Enterprise Guaranteed Buyer as compensation of the costs of purchasing renewable electricity under the green tariff. 

    On July 31 the company also paid 454 million UAH. On the whole, to date Ukrenergo has transferred to the Guaranteed Buyer 704 million UAH, or 44.5% of the total estimated amount of the advance payment for July 2019, which is 1.58 billion UAH. The final amount of the payment due will be raised after the current month is closed.

    As previously reported, the District Administrative Court of Kyiv temporarily suspended Ukrenergo’s tariffs for II half 2019 to secure a claim by the Nikopol Ferroalloy Plant and a number of other enterprises. Therefore, in July 2019, the company billed its services under the contracts at the old tariff, effective before July 1, 2019, – 5,740 kop/kWh. The bills, however, contain a new line “Recommended Amount Payable”, which quotes the payment under the new tariffs for II half 2019: 347.43 UAH/MWh for transmission services and 8.90 UAH/MWh for the services of dispatch (operational and technological) control. Subsequently, on August 1, the court modified the measures for securing the claim so that the tariffs remained suspended only for the claimant.

    Since August 1, 2019, NEURC Resolutions No.1411 of July 12, 2019, and No.1622 of August 1, 2019, established new tariffs until the end of 2019 (for transmission – 312.14 UAH/MWh, for dispatching – 8.90 UAH/MWh).

    Thus currently the market participants are paying for Ukrenergo services unevenly and at different tariffs: at either old ones or recommended ones, and many pay nothing at all.

    The extra money that Ukrenergo receives from the recommended payment is spent on the priorities outlined by the company immediately after the court suspending the new tariffs: to buy electricity to cover the grid losses and to pay the Guaranteed Buyer as a compensation of the costs of buying renewable electricity under the green tariff. Compensation for RES generation is a special obligation placed on Ukrenergo in accordance with applicable law.

    At the same time, due to the irregularity of payments by market participants and their insufficiency to cover the costs, Ukrenergo is unable to fulfill its obligations on time and in full. We are stressing that the increase in the company’s tariffs in II half of 2019 is due to the added costs previously born by SE Energorynok, while Ukrenergo’s operating costs remained virtually at the same level.


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