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"Ukrenergo's debts hinder investments in distributed energy," says an advisor.

Долги "Укрэнерго" препятствуют инвестициям в распределенную энергетику, утверждает советник.

"The current rate of 52.9 kopecks, according to the company's estimates, will lead to a deficit in payments to 'green' producers amounting to approximately 8 billion hryvnias by 2024," said Boyko.

He noted that as a result, "Garpok" will also lack the funds to settle accounts with 'green' electricity producers.

"This certainly does not contribute to improving the investment climate and hinders the attraction of investments for building distributed generation. Every year, we see a repeat of the economic imbalance situation with the tariff of NEC 'Ukrenergo'," emphasized Boyko.

In his view, the National Commission for State Regulation of Energy and Utilities (NERC) is relying on questionable assumptions that lead to the establishment of an undervalued tariff, resulting in yet another cycle of accumulating debts to 'green' producers. Boyko clarified that this year, the main factor contributing to the deficit is the assumption regarding the price at which Garpok will sell 'green' electricity in competitive market segments.

"According to the regulator's assumptions, 'Garpok' should be selling it for more than one hryvnia higher than the current selling price. Consequently, the cost of the service that NEC 'Guaranteed Buyer' must pay is undervalued by more than one hryvnia for each kilowatt-hour of 'green' electricity," highlighted the Prime Minister's advisor.