We have a margin of safety to complete the winter period without any restrictions on electricity consumption

25/ 01/ 2024

This was announced by Andrii Herus, the Chairman of the Committee of the Verkhovna Rada of Ukraine on energy and housing and communal services, during a meeting of representatives of the Parliamentary Committee with EBA companies on January 24. The meeting focused on the overall situation in the energy sector, as well as energy efficiency and renewable energy development. Andrii Herus informed the companies present that the situation in the energy sector is currently stable. At a time when the state budget resources are quite limited, Mr. Herus believes that the idea of redirecting part of the proceeds from the CO2 tax to modernize enterprises, which is a common practice in the EU, has the potential to promote energy efficiency. In addition, with the increased capacity of interstate crossings, energy-exporting companies can earn money by selling electricity to EU countries and allocate part of this income for capital investments. Mr. Herus also mentioned the Energy Community project, which buys and transfers energy equipment to Ukraine, including for private companies affected by the war. The business had the opportunity to discuss some issues of the Law on Energy Efficiency, which, in particular, provides for the creation of a database of energy-consuming products. At the same time, the EBA experts suggested that Ukraine should join a similar European database, which not only corresponds to our strategic course towards EU membership but also allows us to save budget funds and effectively combat the sale and import of banned non-energy efficient equipment, such as gas boilers. The EBA experts noted that this approach is also supported by the State Agency on Energy Efficiency and Energy Saving of Ukraine. At the same time, its implementation requires amendments to the Law on Energy Efficiency. Therefore, business representatives urge MPs - members of the relevant Parliamentary Committee - to initiate the relevant legislative changes.   In addition, representatives of energy companies raised the issue of the possibility of a cash method of VAT for green bonuses, as it works for producers under the green tariff, so that the tax liabilities of companies arise after receiving payment under special conditions for green energy producers. The business noted that this approach could be implemented by amending the Law on the Electricity Market, which may be easier than amending the Tax Code. They also raised the issue of charging a green premium for the amount of electricity that was not produced due to the satisfaction of an application for unloading, which would be subject to compensation under the green tariff.  In addition, the meeting participants discussed some national energy efficiency programs that have proven to be simple and effective, such as the EU-supported program for households to replace old incandescent light bulbs with energy-saving ones. In addition, Mr. Herus invited businesses to join the initiative to install solar panels in hospitals and medical facilities. Please contact EBA representatives if your company has the resources and desire to join this project. We are sincerely grateful to the Chairman of the Committee Andrii Herus, Committee member, Head of the Subcommittee on Energy Saving and Energy Efficiency Serhii Nahorniak, and Committee member Ivan Yunakov for a productive meeting!

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Andrii Herus informed the companies present that the situation in the energy sector is currently stable. At a time when the state budget resources are quite limited, Mr. Herus believes that the idea of redirecting part of the proceeds from the CO2 tax to modernize enterprises, which is a common practice in the EU, has the potential to promote energy efficiency. In addition, with the increased capacity of interstate crossings, energy-exporting companies can earn money by selling electricity to EU countries and allocate part of this income for capital investments. Mr. Herus also mentioned the Energy Community project, which buys and transfers energy equipment to Ukraine, including for private companies affected by the war.

The business had the opportunity to discuss some issues of the Law on Energy Efficiency, which, in particular, provides for the creation of a database of energy-consuming products. At the same time, the EBA experts suggested that Ukraine should join a similar European database, which not only corresponds to our strategic course towards EU membership but also allows us to save budget funds and effectively combat the sale and import of banned non-energy efficient equipment, such as gas boilers. The EBA experts noted that this approach is also supported by the State Agency on Energy Efficiency and Energy Saving of Ukraine. At the same time, its implementation requires amendments to the Law on Energy Efficiency. Therefore, business representatives urge MPs – members of the relevant Parliamentary Committee – to initiate the relevant legislative changes.  

In addition, representatives of energy companies raised the issue of the possibility of a cash method of VAT for “green bonuses,” as it works for producers under the “green” tariff, so that the tax liabilities of companies arise after receiving payment under special conditions for green energy producers. The business noted that this approach could be implemented by amending the Law on the Electricity Market, which may be easier than amending the Tax Code. They also raised the issue of charging a “green” premium for the amount of electricity that was not produced due to the satisfaction of an application for unloading, which would be subject to compensation under the “green” tariff. 

In addition, the meeting participants discussed some national energy efficiency programs that have proven to be simple and effective, such as the EU-supported program for households to replace old incandescent light bulbs with energy-saving ones. In addition, Mr. Herus invited businesses to join the initiative to install solar panels in hospitals and medical facilities. Please contact EBA representatives if your company has the resources and desire to join this project.

We are sincerely grateful to the Chairman of the Committee Andrii Herus, Committee member, Head of the Subcommittee on Energy Saving and Energy Efficiency Serhii Nahorniak, and Committee member Ivan Yunakov for a productive meeting!