"Servants of the People" propose to pay off "green" tariff debts by issuing 20 billion worth of bonds

Deputies of the Servant of the People majority faction Yuri Kuzbit, Bogdan Torokhtiy, and Maxim Zaremsky are proposing to issue domestic government bonds (OVGZs) for UAH 19.6 billion to repay part of the debt and other settlements with electricity producers from renewable energy sources (RES) in the fourth quarter of this year.

BusinessCensor reports this with reference to Interfax-Ukraine.

According to bill No. 4151, after the issue of government bonds for the suggested amount, it will be transferred as a subsidy to NEC Ukrenergo so that this company can pay off its debt to the Guaranteed Buyer State Enterprise (GarPok), and the latter - to renewable energy producers.

Accordingly, the maximum size of the state budget deficit in 2020 will be increased from UAH 298.4 to 318 billion.

The authors of the bill remind that GarPok's debt to the green energy suppliers as of August 1, 2020, amounted to UAH 22.4 billion. The government undertook to pay off 40% (UAH 8.96 billion) of it in the fourth quarter of 2020 under a memorandum with renewable energy producers.


Besides, amendments to the law "On alternative energy sources" from July this year established that the government provides in the state budget for financial support for GarPok to pay for electricity from renewable energy sources in the amount of at least 20% of the forecast production of such electricity for the corresponding year. According to the calculations of NEURCU and GarPok, this will amount to 13.2 billion kWh for UAH 53.2 billion in 2020. This means that UAH 10.64 billion should be envisaged in the state budget.