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Business met with the Head of SE “Guaranteed Buyer”

09/ 11/ 2022
  On November 2, the EBA Energy Committee met with the Head of the State Enterprise Guaranteed Buyer Andriy Pylypenko. The participants of the meeting discussed many issues related to the functioning of the electricity market these days. Particularly, Andriy Pylypenko informed the business representatives about the benefits of introducing the market of guarantees of origin (GOs) for the industry. They can become a source of funds for Guaranteed Buyer and further settlement with RES enterprises. Meanwhile, according to him, the question remains open as to whether the funds for 100% compensation are included in the transmission tariff of NPC Ukrenergo for 2023, the draft of which has already been published and will require approval by NEURC. Andrii Pylypenko also spoke about a range of litigations in which Guaranteed Buyer is involved. Thus, there is already a case in favor of Energoatom, and if the company requests to claim funds from Guaranteed Buyer, it will increase the deficit of settlements with RES enterprises. Another commercial dispute with NPC Ukrenergo is now in an active stage and concerns compensation under the acts of acceptance and transfer of services to increase the share of RES, which have already been approved by the parties. However, according to the director of SE Guaranteed Buyer, in case of losing this case, Ukrenergo may potentially claim an overpayment for the service to increase the share of RES in previous periods for UAH 10 billion. There is a risk that the company will underpay these funds to Guaranteed Buyer in future periods, and, accordingly, these funds will not be received by green energy enterprises for the generated green electricity. At the same time, the parties exchanged their views on tariff calculations, prospects for further development of the market, problems faced by its participants in the context of infrastructure damage, etc. The representatives of the Committee and Guaranteed Buyer agreed to continue discussions in a working format regularly. We thank Andriy Pylypenko and his team for their openness to a transparent dialogue with the business community.

On November 2, the EBA Energy Committee met with the Head of the State Enterprise “Guaranteed Buyer” Andriy Pylypenko. The participants of the meeting discussed many issues related to the functioning of the electricity market these days.

Particularly, Andriy Pylypenko informed the business representatives about the benefits of introducing the market of guarantees of origin (GOs) for the industry. They can become a source of funds for Guaranteed Buyer and further settlement with RES enterprises.
Meanwhile, according to him, the question remains open as to whether the funds for 100% compensation are included in the transmission tariff of NPC Ukrenergo for 2023, the draft of which has already been published and will require approval by NEURC.

Andrii Pylypenko also spoke about a range of litigations in which Guaranteed Buyer is involved. Thus, there is already a case in favor of Energoatom, and if the company requests to claim funds from Guaranteed Buyer, it will increase the deficit of settlements with RES enterprises. Another commercial dispute with NPC Ukrenergo is now in an active stage and concerns compensation under the acts of acceptance and transfer of services to increase the share of RES, which have already been approved by the parties. However, according to the director of SE Guaranteed Buyer, in case of losing this case, Ukrenergo may potentially claim an overpayment for the service to increase the share of RES in previous periods for UAH 10 billion. There is a risk that the company will underpay these funds to Guaranteed Buyer in future periods, and, accordingly, these funds will not be received by green energy enterprises for the generated green electricity.

At the same time, the parties exchanged their views on tariff calculations, prospects for further development of the market, problems faced by its participants in the context of infrastructure damage, etc.

The representatives of the Committee and “Guaranteed Buyer” agreed to continue discussions in a working format regularly.
We thank Andriy Pylypenko and his team for their openness to a transparent dialogue with the business community.

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