The government has adopted new rules for heat utilities' settlements with energy suppliers
The Cabinet of Ministers of Ukraine has adjusted the procedure for distributing financial revenues of heat supply and heat generation companies. The government initiative was designed to stabilize the energy market and reduce the debt burden owed to the supplier of last resort and network operators. This is reported by the portal PromPolitInform, citing information from the Cabinet of Ministers of Ukraine, based on data from Denys Shmyhal.
The changes approved by the government provide for the establishment of fixed shares for transferring funds to market participants. The main goal of the decision is to improve the payment discipline of enterprises during preparations for the autumn-winter period.
New proportional distribution of revenues
According to the approved mechanism, the major part of the resources received by enterprises will be channeled towards settlements for consumed natural gas, accounting for a 60% share. Another 5% of funds will be accumulated to repay debts for electricity supply and related services.
The remaining 35% of financial revenues will stay directly at the disposal of heat supply and heat generation organizations. These funds are intended to cover their current operational needs and payments.
Expected effect for the energy market
The new approach introduces a transparent proportional settlement system that will account for the actual volumes of accumulated debt to market entities. According to First Vice Prime Minister of Ukraine – Minister of Energy of Ukraine Denys Shmyhal, this will make financial flows predictable.
«The introduction of a clear and transparent mechanism for distributing funds will ensure stable and predictable settlements, reduce the level of debt, increase the financial discipline of enterprises, and improve the financial standing of electricity market participants as we prepare for the autumn-winter period», — noted Denys Shmyhal.
Illustrative photo: Prymasal / CC BY-SA 4.0
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