10:49 16.11.2016

China's CNBM links attempts to discriminate company with fight of energy market players

3 min read
China's CNBM links attempts to discriminate company with fight of energy market players

Attempts to discriminate China's CNBM in the issues of the feed-in tariff are linked to tough fight of energy market players, Director General of China's CNBM New Energy Engineering Co., Ltd. Yongzhi Chen has said, commenting on the refusal to compensate the loss from the decreased tariffs to the company, while other market players received this compensation.

"Being involved in this fight, some participants think that the problem could be solved at expense of others. In this concrete case – at expense of us," he said in an interview with Interfax-Ukraine.

Chen recalled that late 2014 and early 2015 the feed-in tariff was not revised pegging to the euro exchange rate that has significantly changed. Later the National Commission for Energy, Housing and Utilities Services Regulation (NCER) decided to compensate short-received funds to producers, but the CNBM's facilities were not included in the list.

"It is fair to assume that the list was created selectively in a non-transparent manner. Our companies filed claims to court and won them. However, the situation has not been solved. Our plants, compared to other sustainable power generators, have not received the compensation for the non-revision of the tariffs to the euro exchange rate," he said.

Due to the reduction of the tariff in 2015 CNBM had to ask banks financing the projects to reschedule their loans.

"Thus, our group of companies faced losses twice – due to short-received revenue and additional payments on loans we had to pay. The further decline of the tariff would not only decrease return on CNBM's investment, but would make the operation of the plants loss-making," Chen said.

He said that dozens of other solar power plants built later – with the cheaper equipment – are operating with the same tariff CNBM's solar power plants had before the reduction – their tariff was not cut.

Chen said that the position of the Chinese company today is ignored when bills prolonging the decreased tariff for large solar power plants with a capacity of over 10 MW for the whole period of the stimulating tariff until 2030 are discussed.

The CNBM director general believes that these initiatives are politically motivated and their authors deceived their colleagues and the public regarding the owners of the company and its financial indicators. He denied the company's relation to Ukrainian oligarchs, in particular, fugitive ex-head of the National Security and Defense Council of Ukraine Andriy Kliuyev.

CNBM International Corporation is part of the China National Building Materials Group Corporation (CNBM), which was established in 1984 and is under the direct supervision of the State-owned Assets Supervision and Administration Commission of the State Council. CNBM is one of China's largest state-owned corporations. The company is in the top 500 largest companies in the world ranking Fortune Global.

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