A Roundtable Discussion
21 October 2013
The Minister of Regional Development and Housing and Communal Services of Ukraine
to Take Charge of the Issue of Introduction of Energy Service Contracts
to Take Charge of the Issue of Introduction of Energy Service Contracts
The MFSI-II Project took part in a roundtable discussion Improving the Regulatory Framework for the Introduction of the Mechanism of Energy Service Contracts in Budgetary Institutions. The roundtable was held as part of the implementation of the National Action Plan for 2013.
The meeting focused on the regulatory reform needed to improve the legislative environment for attracting investments in the energy efficiency sector, in particular, attracting investments for improving the energy efficiency of public buildings in Ukraine.
The participants considered two relevant legislative drafts registered with the Verkhovna Rada of Ukraine.
These drafts are designed to remove existing barriers to the introduction of energy service contracts in the budgetary sphere. The drafts contain Project proposals intended to shape the regulation of attracting private capital for implementing energy saving activities in budgetary institutions.
In the opinion of the Project, the legislative draft developed under the leadership of the National Commission for State Regulation of Public Utilities (National Commission) is more mature, contains less risks, and is based on systemic approach. Among other things, it provides maximum protection to:
The meeting focused on the regulatory reform needed to improve the legislative environment for attracting investments in the energy efficiency sector, in particular, attracting investments for improving the energy efficiency of public buildings in Ukraine.
The participants considered two relevant legislative drafts registered with the Verkhovna Rada of Ukraine.
These drafts are designed to remove existing barriers to the introduction of energy service contracts in the budgetary sphere. The drafts contain Project proposals intended to shape the regulation of attracting private capital for implementing energy saving activities in budgetary institutions.
In the opinion of the Project, the legislative draft developed under the leadership of the National Commission for State Regulation of Public Utilities (National Commission) is more mature, contains less risks, and is based on systemic approach. Among other things, it provides maximum protection to:
- energy service companies by the statutory inclusion of the expenditures required to pay for the services of such companies under energy service contracts into local budgets;
- cities from the failure of energy service companies to meet contracts and obligations, as payment for work will only be made based on actual savings.
Wrapping up the meeting, Minister Temnyk of the Ministry of Regional Development and Housing and Communal Services emphasized the need for coordinating the two legislative drafts submitted to the Verkhovna Rada and combining them into a single document. To this end, it is planned to set up tightly defined working groups.
On the whole, the approval of the amendments to the legislation will make it possible to:
On the whole, the approval of the amendments to the legislation will make it possible to:
- Introduce a transparent and coherent scheme of concluding and implementing energy service contracts;
- Increase the attractiveness of budgetary institutions for potential investors in the energy performance sector by guaranteeing the protection of their rights;
- Reduce the energy dependence of Ukrainian municipalities.
Glyanec