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EBA officially presented the Energy Committee

24/ 04/ 2020
  This week, the European Business Association held an online meeting on National energy security during the emergency and ways to tackle the crisis, where business and government discussed the current situation in the energy sector, and further ways to solve urgent problems. At the same time, there was an official launch of the new industrial EBA Energy Committee. First, the business community welcomed the decision to appoint the Minister of Energy and the Environmental Protection- Olga Buslavets, who also joined the online meeting. During her presentation, she introduced a systemic vision for energy development and outlined an 8-step anti-crisis plan: Revise and adjust energy balance due to falling electricity consumption; Tackle the problem of consumer non-payment for gas and electricity; Resolve the problematic situation in the renewable energy sector (for example, changing the size of the green tariff) and make a deliberate decision for the state and business based on a voluntary compromise; Modify the mechanism for the imposition of special duties; Review financial plans of state-owned enterprises; Revise the electricity transmission tariff; Repay old debts of SE “Energorynok”; Establish an anti-crisis staff approved by the CMU to pull the industry out of the crisis. At the same time, the discussion raised issues on electricity, oil and gas, renewable energy, and the necessary measures to reboot the work of these sectors. Thus, as for electricity issues, it was pointed out that it is necessary to introduce stimulating methods of tariff formation with market rates in accordance with European practices and to continue the mediation process with the participation of the European Energy Community on green tariffs. In addition, the discussion involved the settlement of the issue of non-payment for the produced renewable energy and the enablement of state producers to sell electricity with the use of block positions and bidding formula. Regarding the oil and gas sector, industry representatives highlighted three major issues that may affect the level of hydrocarbon production in Ukraine. First is the need to maintain an incentive rate of rent for new wells. Ms. Buslavets said that the study on a rental rate and its impact on Ukraines hydrocarbon production had already been initiated. Secondly, it is necessary to adjust natural gas consumption rates to economically viable ones for consumers who do not use meters. The third is the introduction of gas metering and gas volume calculation in units of energy in the natural gas market. The European Business Association would like to thank all the participants of the meeting for a constructive discussion and congratulate Olga Buslavets on her appointment. We hope that the authorities will make every effort to resolve the crisis in the energy sector and implement the announced steps as quickly as possible in order to stimulate the inflow of investments into the industry.   <span data-mce-type=bookmark style=display: inline-block; width: 0px; overflow: hidden; line-height: 0; class=mce_SELRES_start></span> For the reference: Acting Minister of Energy and Environmental Protection Olga Buslavets, MPs, members of the Committee on Energy, Housing and Utilities Services and the Committee on Economic Development - Viktoria Gryb, Serhii Nahornyak and Lyudmila Buimister, acting Ukrenergo NPC Volodymyr Kudrytskyy, Director of the Guaranteed Buyer SE Konstantin Petrykovets, representatives of the NERC, as well as the Head of the Energy and Environment Support Group of Ukraine to the European Commission Thorsten Vollert and EBRD representative Olga Yeromina took part in the online meeting.

This week, the European Business Association held an online meeting on ” National energy security during the emergency and ways to tackle the crisis”, where business and government discussed the current situation in the energy sector, and further ways to solve urgent problems. At the same time, there was an official launch of the new industrial EBA Energy Committee.

First, the business community welcomed the decision to appoint the Minister of Energy and the Environmental Protection- Olga Buslavets, who also joined the online meeting. During her presentation, she introduced a systemic vision for energy development and outlined an 8-step anti-crisis plan:

  • Revise and adjust energy balance due to falling electricity consumption;
  • Tackle the problem of consumer non-payment for gas and electricity;
  • Resolve the problematic situation in the renewable energy sector (for example, changing the size of the “green” tariff) and make a deliberate decision for the state and business based on a voluntary compromise;
  • Modify the mechanism for the imposition of special duties;
  • Review financial plans of state-owned enterprises;
  • Revise the electricity transmission tariff;
  • Repay old debts of SE “Energorynok”;
  • Establish an anti-crisis staff approved by the CMU to pull the industry out of the crisis.

At the same time, the discussion raised issues on electricity, oil and gas, renewable energy, and the necessary measures to reboot the work of these sectors.

Thus, as for electricity issues, it was pointed out that it is necessary to introduce stimulating methods of tariff formation with market rates in accordance with European practices and to continue the mediation process with the participation of the European Energy Community on green tariffs. In addition, the discussion involved the settlement of the issue of non-payment for the produced renewable energy and the enablement of state producers to sell electricity with the use of block positions and bidding formula.

Regarding the oil and gas sector, industry representatives highlighted three major issues that may affect the level of hydrocarbon production in Ukraine. First is the need to maintain an incentive rate of rent for new wells. Ms. Buslavets said that the study on a rental rate and its impact on Ukraine’s hydrocarbon production had already been initiated. Secondly, it is necessary to adjust natural gas consumption rates to economically viable ones for consumers who do not use meters. The third is the introduction of gas metering and gas volume calculation in units of energy in the natural gas market.

The European Business Association would like to thank all the participants of the meeting for a constructive discussion and congratulate Olga Buslavets on her appointment. We hope that the authorities will make every effort to resolve the crisis in the energy sector and implement the announced steps as quickly as possible in order to stimulate the inflow of investments into the industry.

 

For the reference:

Acting Minister of Energy and Environmental Protection Olga Buslavets, MPs, members of the Committee on Energy, Housing and Utilities Services and the Committee on Economic Development – Viktoria Gryb, Serhii Nahornyak and Lyudmila Buimister, acting Ukrenergo NPC Volodymyr Kudrytskyy, Director of the Guaranteed Buyer SE Konstantin Petrykovets, representatives of the NERC, as well as the Head of the Energy and Environment Support Group of Ukraine to the European Commission Thorsten Vollert and EBRD representative Olga Yeromina took part in the online meeting.

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