REUTERS
The Verkhovna Rada of Ukraine on November 9 passed draft law No. 6005-d on amendments to the Tax Code of Ukraine regarding stabilization of settlements on the wholesale electricity market of Ukraine, according to an UNIAN correspondent.
The document temporarily abolishes penalties for generating companies, debtors on VAT payments, due to the existence of large debts before these companies in the electricity market.
As stated in the explanatory note, the draft law introduces the following change in tax legislation: for the period until July 1, 2018, fines and penalties shall be canceled for companies that are VAT debtors and that generate electricity and sell it to state-owned Energorynok. Such a change is required in connection with a multibillion-dollar debt before these companies in the electricity market.
Read alsoUkraine should start real reform, not just another heating season
"Accrual of penalties for electric power industry entities by regulatory bodies and washing away of current assets from these companies to pay their tax debt will make it impossible to provide for a normal preparation and operation of the said entities amid the 2017-2018 heating season," reads the note.
According to the document, the measures proposed will help stabilize the companies' financial condition, as well as settlements in the wholesale electricity market, which is required for its transition to a new model.
As UNIAN reported earlier, in the first half of 2017, the payments by Energorynok to generating companies accounted for 93.8%. Thus, electricity producers received UAH 82 billion out of the set UAU 87.5 billion.
Energorynok CEO Yuriy Hnatyuk has earlier said that the company plans to increase settlements before the generating companies to 98% in 2017.