Energy Saving Activities
26 June 2013
Progress in Attracting Private Capital for Energy Saving Activities at Budgetary Institutions
The Coordinating Center for Implementation of Economic Reforms under the President of Ukraine invited the MFSI-II Project to take part in a meeting on the legal foundation for operating energy service companies and the realization of energy performance contracts. The meeting took place on 26 June 2013. The Ministry of Finance, Ministry of Economy, National Communal Services Regulatory Commission (National Commission), EBRD, Verkhovna Rada, and DTEK Company attended.
The participants considered a legislative bill on amendments to the Budget Code of Ukraine, which is required to remove legislative barriers to the introduction of energy performance contracts.
The participants supported the inclusion of Project proposals in this draft. These proposals are essential for regulations concerning private capital debt raised for energy performance activities at budgetary institutions. Among other things, they relate to the maximum protection of energy service companies by guaranteeing that budgets will include the long-term expenditures needed for paying services under energy performance contracts. At the same time, cities are protected from any unfair practices on the part of energy service companies.
The Project is working with the National Commission in developing a legislative draft on this issue. All the proposals made by the Project have been incorporated in the draft. Accordingly, the Project believes that the legislative draft developed under the guidance of the National Commission is more advanced, contains fewer risks, and is based on a systematic approach. As mentioned there, the legislative draft has been approved as a whole by the Legislative Board of the said Commission, and the National Commission is to make the final decision with regard to its registration at the Verkhovna Rada.
The participants considered a legislative bill on amendments to the Budget Code of Ukraine, which is required to remove legislative barriers to the introduction of energy performance contracts.
The participants supported the inclusion of Project proposals in this draft. These proposals are essential for regulations concerning private capital debt raised for energy performance activities at budgetary institutions. Among other things, they relate to the maximum protection of energy service companies by guaranteeing that budgets will include the long-term expenditures needed for paying services under energy performance contracts. At the same time, cities are protected from any unfair practices on the part of energy service companies.
The Project is working with the National Commission in developing a legislative draft on this issue. All the proposals made by the Project have been incorporated in the draft. Accordingly, the Project believes that the legislative draft developed under the guidance of the National Commission is more advanced, contains fewer risks, and is based on a systematic approach. As mentioned there, the legislative draft has been approved as a whole by the Legislative Board of the said Commission, and the National Commission is to make the final decision with regard to its registration at the Verkhovna Rada.
Glyanec