At the initiative of the Ministry of Energy of Ukraine, the Government has improved the mechanism for distributing funds of heat supply and heat generation enterprises. The decision is aimed at improving the functioning of the energy market and reducing enterprises’ outstanding debts to the supplier of last resort, the transmission system operator and distribution system operators. First Deputy Prime Minister of Ukraine – Minister of Energy of Ukraine Denys Shmyhal announced this.

According to him, the new mechanism provides for the introduction of a minimum share of funds that enterprises will allocate to payments for electricity, as well as a transparent mechanism for the proportional distribution of funds among participants in the electricity market depending on the amount of outstanding debt.

In particular, the following distribution of funds is envisaged:

• 60% – for payments for natural gas;
• 5% – for repayment of debts for electricity and related services;
• 35% – remains at the disposal of enterprises for current payments (unchanged).

“The introduction of a clear and transparent mechanism for distributing funds will ensure stable and predictable settlements, reduce the level of outstanding debt, strengthen enterprises’ financial discipline and improve the financial standing of electricity market participants as preparations for the autumn-winter period continue,” Denys Shmyhal said.