The government is proposed to introduce a moratorium on debt collection from Guaranteed Buyer for renewable energy

The Verkhovna Rada Committee on Energy, Housing and Utilities proposes to introduce a moratorium on the recovery of funds from the State Enterprise Guaranteed Buyer in enforcement proceedings on claims filed by renewable electricity producers, Energoreforma reports.

The committee decided to make the corresponding amendment to the draft law No.11301-d on the distribution of funds from the current account with a special regime of use at a meeting on 14 November.

‘We are doing everything possible to repay old debts… If someone goes to court and writes off money, it is GarPok’s money, which is supposed to be allocated to all green producers. Accordingly, there will be even more debts. Large companies understand the situation and are not going to court yet, but smaller ones are. The write-off of their claims has not caused any major problems. But if one of the medium or large companies goes to court and writes off a large amount through enforcement proceedings, payments may stop altogether, to all participants,’ said Andriy Gerus, chairman of the Energy Committee.

The NEURC and Guaranteed Buyer supported the idea. They insist that all producers should be supported under the FIT, so debt payments should be distributed proportionally. And if the funds are also seized in court proceedings, this will affect everyone.

However, the Executive Service of the Ministry of Justice believes that the moratorium expands the list of companies against which it is impossible to enforce a court decision. This will destroy the investment climate and creates corruption risks in the debtor’s operations.

The Energy Committee rejects these concerns and instead suggests that the government should be asked to draft a bill on debt offsetting in the energy market. And, of course, to set up a working group to resolve debt problems.