The European Business Association (EBA) appeals to the Prime Minister of Ukraine, Denys Shmyhal, with a request to facilitate the resolution of debts on the electricity market as soon as possible before the start of the heating season.
This is stated in the message of the European Business Association, Ukrainian News Agency reports.
"The European Business Association appeals to the Prime Minister of Ukraine Denys Shmyhal with a request to help resolve problematic issues (on the electricity market) as soon as possible. In particular, to cancel the maximum allowable price levels (price caps) on the electricity market established by the National Energy Regulatory Commission of Ukraine; to establish a deficit-free tariff for transmission of electricity to NEC Ukrenergo," the message says.
The EBA also calls on the authorities to find a mechanism for solving the debt issue in the electricity market before the start of the heating season.
"The aggregate debt of electricity market subjects to NEC Ukrenergo exceeds UAH 60 billion. Accordingly, Ukrenergo cannot fully fulfill its obligations to other participants in the electricity market. This leads to the formation and accumulation of a chain of debts "all to all". Ukrenergo receives one of the main sources of funds for its activities, in particular, from tariffs for electricity transmission and dispatching of the power system. However, according to the information of NEC Ukrenergo, established by the Energy Commission, the tariffs currently do not allow it to receive a sufficient amount of funds, so as not to form debts and work without loss," the message reads.
Moreover, in the opinion of EBA member companies, the formation of debts in the energy industry is influenced by a certain regulation of the electricity market.
"In particular, the maximum allowable price levels set by the Energy Commission in it determine the absence of the possibility of importing in hours of shortage, because in hours of shortage the price of electricity cannot rise above the current limit. In addition, price caps also do not contribute to the import of electricity in peak load hours, because in currently, electricity in the EU is more expensive than in Ukraine. To solve this problem, the Energy Commission proposed a mechanism for imposing special obligations on electricity importers to compensate them for the difference in the cost of electricity. At the same time, if the compensation for the difference in the cost of electricity will be provided at the expense of Ukrenergo, in the opinion of the business, such a decision is not justified," the message reads.
In addition, according to the report, this mechanism may lead to the accumulation of new debts by energy market participants, rather than to the settlement of the situation.
As Ukrainian News Agency earlier reported, Ukraine is moving to European rules for the export and import of electricity.
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