The deficit of funds to finance a feed-in tariff is more than 480 million UAH

NPC Ukrenergo does not have enough funds to pay the advance payment to SE Guaranteed Buyer in the first ten days of November to compensate for its costs of paying a feed-in tariff. The deficit is more than 481 million UAH, the advance amount is 821 million UAH. This was reported by the press service.

“The main reason for the lack of funds to compensate for the tariff now is the unevenness and arrears in the payment by the market participants for Ukrenergo’s energy transmission services. As of November 14, 2019, this debt is more than 1.2 billion UAH, and the payment level is 90%”, the company said.

Thus, the payment of funds for Guaranteed Buyer is possible only at the expense of balances in Ukrenergo's bank accounts. So, on November 14, they amounted to about 780 million UAH, of which the company needs to reserve 530 million UAH to pay income tax for the nine months of 2019.

The company also noted that the shortage of funds is associated with the debt of market participants in paying the tariff for the transmission of electricity. We are talking about Nikopol Ferroalloy Plant, DneprAzot, Marganetsky and Pokrovsky GOK. For enterprises, since July, the tariffs for transmission established for the II half of 2019 have been suspended in court.

They are charged at the previous tariff – 57.4 UAH/MWh, which was valid in the first half of 2019. At the same time, when calculating the tariff for the second half of 2019, it was assumed that they would pay at higher rates: 347.14 UAH/MWh in July and 116.54 UAH/MWh in August.

“As a result, the total shortfall in funds for July-November due to the suspension of tariffs through the court is 406.620 million UAH. These funds can be received in payment of the transfer tariff only after the relevant decision of the courts”, the statement said.

Tags: The Cabinet of Ministers, contracts, renewable energy, tariffs, solar energy, wind energy, court, bio-TPP, legislation, electricity, NEURC, Top management, Ukrenergo, feed-in tariff, ETL, electricity market, Guaranteed buyer, debt, ВИЭ

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