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Business сalls for action to address debt on the electricity market

30/ 09/ 2024
  The repayment of accumulated debts remains an extremely pressing issue for participants in the energy market. This situation is of significant concern to businesses and negatively affects both preparations for the autumn-winter period and the ability of market participants to attract new investments in the sector and participate in upcoming auctions. As of September 2024, the debt of the electricity producer Energoatom to the State Enterprise Guaranteed Buyer amounted to UAH 12.4 billion. The debt of the Guaranteed Buyer to universal service providers reached UAH 12.3 billion, while its debt to producers from alternative energy sources exceeded UAH 34 billion. Ukrenergos debt to the Guaranteed Buyer, in the context of the growing share of electricity production from renewable sources, totaled approximately UAH 29 billion. Experts from the EBA emphasize that this debt spreads throughout the entire electricity market chain – from distribution system operators, the transmission system operator Ukrenergo, and the Guaranteed Buyer to renewable energy producers. Therefore, the European Business Association considers resolving this issue a critically important and urgent matter that requires the involvement of all relevant stakeholders. According to the member companies of the EBAs Energy Committee, one of the potential quick solutions being discussed by experts is the use of Ukrainian banks high liquidity to provide targeted financing to Energoatom. As a result, the debts to the Guaranteed Buyer could be quickly settled, and the borrower could repay the loan from its operating income. This would inject liquidity into the market ahead of the heating season and allow debts to be paid off to investors in distributed generation. The EBA has sent an official letter to the Minister of Energy of Ukraine and the Acting CEO of Energoatom, requesting consideration of this proposal to resolve the debts of participants in the electricity market. We hope for business proposals to be taken into account!

The repayment of accumulated debts remains an extremely pressing issue for participants in the energy market. This situation is of significant concern to businesses and negatively affects both preparations for the autumn-winter period and the ability of market participants to attract new investments in the sector and participate in upcoming auctions.

As of September 2024, the debt of the electricity producer Energoatom to the State Enterprise “Guaranteed Buyer” amounted to UAH 12.4 billion. The debt of the “Guaranteed Buyer” to universal service providers reached UAH 12.3 billion, while its debt to producers from alternative energy sources exceeded UAH 34 billion. Ukrenergo’s debt to the “Guaranteed Buyer,” in the context of the growing share of electricity production from renewable sources, totaled approximately UAH 29 billion.

Experts from the EBA emphasize that this debt spreads throughout the entire electricity market chain – from distribution system operators, the transmission system operator Ukrenergo, and the “Guaranteed Buyer” to renewable energy producers. Therefore, the European Business Association considers resolving this issue a critically important and urgent matter that requires the involvement of all relevant stakeholders.

According to the member companies of the EBA’s Energy Committee, one of the potential quick solutions being discussed by experts is the use of Ukrainian banks’ high liquidity to provide targeted financing to Energoatom. As a result, the debts to the “Guaranteed Buyer” could be quickly settled, and the borrower could repay the loan from its operating income. This would inject liquidity into the market ahead of the heating season and allow debts to be paid off to investors in distributed generation.

The EBA has sent an official letter to the Minister of Energy of Ukraine and the Acting CEO of Energoatom, requesting consideration of this proposal to resolve the debts of participants in the electricity market. We hope for business proposals to be taken into account!

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