16:58 15.11.2021

Funds from Ukrenergo eurobonds do not cover all debts to RES generation for 2020-2021 - ex-head of Guaranteed Buyer

3 min read

KYIV. Nov 15 (Energy Reform) - Funds attracted by Ukrenergo from the placement of eurobonds in the amount of $ 825 million are enough to fully pay off debts to renewable energy generation for 2020, but they will not cover the debt in 2021, the ex-head of the Guaranteed Buyer state enterprise, Kostiantyn Petrykovets, said.

"Out of UAH 21.6 billion (the amount of funds raised by Ukrenergo from eurobonds), UAH 15.3 billion are debts last year. The rest is used to pay off debts for 2021," he said at a press conference at Interfax-Ukraine.

At the same time, he pointed out that the funds from eurobonds alone will not be enough to fully cover the debt incurred to the producers of "green" electricity in 2021.

"According to my calculations, the debt to renewable energy generation at the end of 2021 will amount to about UAH 12 billion (if there are no other receipts, except for funds from eurobonds). Every month they see a shortage of about UAH 1 billion. Of course, by the end of the year there will be more accurate data," he said.

Petrykovets clarified that approximately this amount of debt will be at the end of this year, if Ukrenergo does not pay off its debt to Guaranteed Buyer, amounting to about UAH 15 billion.

"The whole problem is in paying for 20% of the volume of generated RES electricity: for the year Ukrenergo has not signed a single act for us, since its tariff does not contain this amount. As well as in the budget from which these volumes should be financed. All our attempts to make changes in the law were not successful," Petrykovets said, pointing out that Ukrenergo does not fully pay the funds that are included in the tariff.

At the same time, he drew attention to the fact that Ukrenergo has transferred to Guaranteed Buyer UAH 19.3 billion out of UAH 21.6 billion raised from eurobonds.

"I understand that the rest should come later. Perhaps, based on the results of the year," he suggested.

As reported, Ukrenergo transferred UAH 19.3 billion from eurobonds to Guaranteed Buyer. The state-owned enterprise sent them through Oschadbank for settlements with renewable energy generation, with which it has about 960 contracts.

Petrykovets noted that on Friday evening, green electricity producers received only UAH 5.6 billion. According to the latest data from the head of the energy committee of the Verkhovna Rada, Andriy Gerus, as of the date of publication of the material, this amount exceeded UAH 10 billion.

Market participants expressed hope that selective payments from Oschadbank were related to technical issues, but nevertheless noted that they were afraid not to receive their money.

Petrykovets himself called the refusal to send funds from eurobonds for other purposes the reason for his dismissal on Saturday. He indicated that he was required to postpone payments and form payment schedules while the law provides for a proportional approach.

The Cabinet of Ministers and the Ministry of Energy explained the dismissal of Petrykovets by unprofessionalism and possible damage to the state from the sale of electricity.