NEURC to sanction loans to Ukrenergo on January 13, 2020
The National Energy and Utilities Regulation Commission (NEURC) has postponed its authorization for the NEC Ukrenergo to move ahead with loans from state-owned banks to repay debts to various types of generation: renewable energy generators (debt November-December 2020 and / or debt March-July 2020) and the nuclear power generator NNEGC Energoatom and the hydropower generator PJSC Ukrhydroenergo.
The corresponding decision was made at the NEURC’s regular weekly meeting on January 6, 2021.
"It is proposed to postpone the consideration until the next meeting, to the next Wednesday [January 13, 2021 - Ed.].By that time we will have our consultations finished in this regard," said the NEURC’s Chairman Valerii Tarasiuk.
According to the agenda of the NEURC’s meeting of January 13, 2021, the SE Guaranteed Buyer in December 2020 initiated the recalculation of the underpaid June and July 2020 amounts to RES generators, taking into account the adjustments due to updated “green” electricity dispatch data from the NEC Ukrenergo.
According to the draft decision of the NEURC, the those amounts have been revised upwards, now amounting to UAH 4.246519 billion due for June 2020, and UAH 4.634864 billion due for July 2020.
As reported earlier by ExPro, at its meeting on January 6, 2021, the NEURC planned to make a decision on authorizing the loans from the Oschadbank, the Ukrgasbank, and the Ukreximbank for the NEC Ukrenergo to repay its November-December 2020 debts to RES producers, the NNEGC Energoatom, and the PJSC Ukrhydroenergo.
The debts to RES generators for March-July 2020 (about UAH 9 billion), according to the NEURC’s position, were to be repaid with proceeds from the IGLBs (treasury bonds), which in Q4 2020 should have been issued by the Cabinet of Ministers (Ministry of Finance).
ExPro Reference: As of January 5, 2021, the SE Guaranteed Buyer owes FY 2020-outdated UAH 25.14 billion to producers of “green” electricity from renewable energy sources (RES, so far paid off by 47.7%. The debt of the SE Guaranteed Buyer for FY2020 to the NNEGC Energoatom and the PJSC Ukrhydroenergo for PSO electricity for household consumers counts UAH 7.455 billion.
The NEC Ukrenergo owes UAH 30.8 billion to the SE Guaranteed Buyer to cover the deficit for payments to both the “green” electricity generation and the state-owned PSO-engaged generating companies. The NNEGC Energoatom and RES investors have filed lawsuits in Ukrainian courts against the SE Guaranteed Buyer in this regard. In its turn, the SE Guaranteed Buyer fully paid off “green” electricity volumes from RES generation investors only in January-February and August-October 2020, while for the period from March to August 1, 2020, the company was accumulating debt up to UAH 9 billion, 40% of which, under the terms of the Memorandum between the government and RES investors, shall be repaid in 2020, and 60% gradually offset (15% of each quarter) in 2021.
However, in 2020 the debt was not repaid by August 1, 2020. To pay off this debt, the Cabinet of Ministers was required to issue IGLBs (treasury bonds) worth UAH 19.6 billion in August-October 2020, according to legislation adopted after the signing of the Memorandum (Law №810). But the bonds were not issued in due timeframe, and the Ministry of Finance nixed in November 2020 the issuance of the IGLBs to repay debts to the "green" generation.