Investors will challenge NEURC's decision to pay a fee to Guaranteed Buyer to ensure its participation in international arbitration
Director of the Association of Solar Energy of Ukraine Artem Semenyshyn believes that most renewable energy producers, in respect of which NEURC has decided to pay in favor of SE Guaranteed Buyer 0.11% of net income for the first three quarters of 2020 to create a special fund for participation in international arbitration, will challenge this decision in court, Interfax-Ukraine reports.
“Most of the companies that have come under the so-called NEURC sanctions will sue for their cancellation. The regulator's decision has no legal basis,” he said at a press conference.
According to the expert, obliging one party to pay the other's costs, the Commission went beyond its powers in making this decision, since these issues are clearly regulated in procedural legislation.
According to the Head of the Board of the Ukrainian Renewable Energy Association, Oleksandr Kozakevych, many investors are considering the possibility of applying to international arbitration against Guaranteed Buyer for renewable electricity debts. Still, they have not filed such claims there.
Recall that the approximate amount of arbitration costs that can be assigned to Guaranteed Buyer when the International Arbitration Court considers disputes related to green electricity purchase and sale agreements for March-July 2020 is $2.6 million.
Guaranteed Buyer presented these calculations in a letter to NEURC about the need to decide on setting the size of payments from renewable energy producers to cover possible arbitration costs of the state-owned enterprise.
Tags: court, NEURC, feed-in tariff, electricity market, Guaranteed buyer, debt, investors
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