Energoatom has limited the supply of electricity to Guaranteed Buyer due to debts

SE NNEGC Energoatom limited the supply of electric energy to SC Guaranteed Buyer, the sale of which is carried out by the Company in the framework of PSO, due to violation of the payment terms for the supplied electric energy and existing debt for the previous period. This was reported by the press service.

“On March 29, 2020, Energoatom suspended the supply of electric energy to Guaranteed Buyer during the delivery period 01.03.2020-31.03.2020 due to violation of the payment deadlines for electricity supplied in March”, the statement said.

In addition, from April 1, 2020, Energoatom limited the supply of electric energy to Guaranteed Buyer in the supply period 01.04.2020 – 30.04.2020 by 40% of the planned volume of electricity supply in each delivery period.

Energoatom reports that the level of payment by Guaranteed Buyer for March 2020 is about 40%.

This situation significantly worsened the financial condition of Energoatom, as the funds received from Guaranteed Buyer are the main source of financing for the company.

“The lack of funds threatens the implementation of programs by Energoatom to improve nuclear safety, reliability and efficiency of nuclear power plants. Lack of funding has an extremely negative impact on the implementation of the production program, the purchase of fresh nuclear fuel, the timely payment of wages, etc.”, the company notes.

Energoatom emphasizes that restricting the sale does not threaten the fulfillment by Guaranteed Buyer of its obligations to ensure the availability of electric energy to the public. According to the company’s calculations, the limited amount of electric energy that will be supplied to Guaranteed Buyer is sufficient for universal service providers and providing them with the needs of the population.

The sale of all the proper amount of electric energy to Guaranteed Buyer will be resumed by Energoatom after the elimination/termination of the circumstances that caused such a suspension of the supply of electric energy, provided that Guaranteed Buyer receives full payment of all outstanding amounts.

To recap, Energoatom filed a lawsuit against Guaranteed Buyer to recover UAH 3 billion.

Tags: The Cabinet of Ministers, contracts, renewable energy, NPP, court, NNEGC "Energoatom", legislation, electricity, NEURC, EU, The Minystry of Energy and Coal Mining, feed-in tariff, ETL, electricity market, Guaranteed buyer, debt, ВИЭ, PSO, agreement, The National Energy and Utilities the Natuonal Regulatory Commission, power system balance, energy sector, electricity transmission, IPS

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