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The Ukrainian government has canceled subsidies of losses in electric networks

Ukraine

without waiting for changes in legislation Mineconomy and the government of Ukraine has made another step to meet business and adopted amendments to the regulation on imposing special obligations to end subsidization of losses in electric networks.

The Ukrainian government has canceled subsidies of losses in electric networks

the Ministry of economy and ecology of Ukraine made the first step to business to stabilize the situation in the energy market and abolished subsidizing of losses in electric networks. The corresponding decree "On amendments to the Regulation on imposing special obligations of participants in the electricity market to ensure the public interest in the operation of electricity market" taken on 9 December at the government meeting.

subsidizing the losses of electricity in networks has led to what is actually on the market there are no incentives for the modernization of networks and, accordingly, reducing losses.

"the Abolition of subsidies will reduce costs of GP "Guaranteed buyer", and therefore to obtaining more to compensate for the difference in tariff for the population and will stimulate the reduction of losses in electric networks," - said in Minamaneho.

the initiative will have the greatest positive financial effect on GP "Guaranteed Buyer" and is a key element in stabilizing the market for renewable energy in 2020.

Recall that at the moment the government of Ukraine developed the strategy of "green" energy transition by 2050, as well as the program of reforming the coal industry, the reform of the tax on emissions of co2, in order to introduce its payment on a used fossil fuels and raise funds for energy efficiency.

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