Energy Community cannot certify the NEC Ukrenergo until the company's financial condition is improved

The Energy Community cannot certify the transmission system operator of the NEC Ukrenergo until the problem with the company's financial condition is resolved due to the financing of renewable generation from the transmission tariff.

This was announced on June 10, 2021, by Janez Kopač, Director of the Energy Community, during the 12th European Ukrainian Energy Day conference.

"Now the NEC Ukrenergo is in the process of certification, the regulator has sent us a preliminary decision on certification, and we must give our opinion on this. One of the most important issues we need to check is the financial stability of the transmission system operator. How can we give a positive answer to the most unprofitable enterprise in Ukraine? It's impossible, it doesn't work that way! So don't expect that," Kopač said.

According to Kopač, Ukraine has a unique decision on the source of funding for RES.

"I have never seen it in the world to be part of the transmission tariff. It is not a question of theoretically making the NEC Ukrenergo a collector of RES fees, as, for example, fiscal services collect taxes - this is not a problem. It is said that this RES fee should not be the company's income and should not be reflected in the NEC Ukrenergo's financial statements, he added.

He also noted that the NEC Ukrenergo must be certified, as this is a condition for joining ENTSO-E, but the company's losses of UAH 27.5 billion in 2020 hinder this process.

"If you look at the news, who is the most unprofitable company? This is the NEC Ukrenergo, with its losses of UAH 27.5 billion. They have to stop paying salaries to employees, they need to declare bankruptcy. But this is not due to regulatory activity, this is due to the fact that the financing of RES electricity is included in the transmission tariff, "said the Director of the Energy Community.

11:44 / 14 June 2021

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