Electricity Sector Debt: Baby Steps

The government has approved an order of mutual reconciliation for debts in Ukrainian energy sector. All domestic energy companies can reconcile equal amounts of payables and receivables (if they exist) with other companies, provided they submit the necessary information to a special center within the next month. The amounts will then be reconciled according to a special procedure. Concorde Capital: This will be the first stage in carrying out the law on debt redemption for energy companies. The remaining debt will be restructured and paid off using special surcharges to energy company tariffs. As a result of these steps, all the electricity and gas production and distribution companies will clean their debt accounts, increasing their investment appeal.