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Guaranteed Buyer considers force majeure when working with contractors in wartime conditions

KYIV. May 4 (Interfax-Ukraine) – SOE Guaranteed Buyer is always sympathetic to possible force majeure circumstances and offers itself options for a way out of a difficult situation in which its counterparty may find itself in a war, the company’s website said on April 2.

"In particular, during the introduction of martial law in Ukraine due to Russia’s aggression, Guaranteed Buyer offered its counterparties to reduce the purchase [of electricity] under bilateral agreements due to a decrease in the overall consumption of electricity in the country," the state enterprise said.

At the same time, it is emphasized that the approach was the same and non-discriminatory to all counterparties, despite the volumes of electricity they purchased.

In addition, according to Guaranteed Buyer, auctions of a state-owned enterprise for the purchase and sale of green electricity on the Ukrainian Energy Exchange (UEEX) have a number of advantages compared to auctions of other manufacturers, where they sell electricity from traditional sources.

In particular, auctions initiated by a state-owned enterprise at UEEX are always transparent and, depending on the type of contract, are aimed at both large consumers and suppliers with a portfolio with a consumer with a total consumption of up to 1 MWh.

"Thus, all participants in the electricity market buying goods from a state-owned enterprise can be sure of the reliability of their seller. For example, SOE Guaranteed Buyer has not unilaterally stopped selling under bilateral agreements since 2020," the company said.

The next key advantages of green auctions are the prepayment for electricity under the contract in equal parts and only for five days in advance, as well as the administration of the process of concluding bilateral contracts by the seller after the auctions and their support during implementation 24/7.

A positive feature of the Guaranteed Buyer auctions at UEEX is also the fact that the price of the financial guarantee used to participate in the auctions is close to the minimum, unlike other participants, and is used as an advance payment under the contract.

"Another unique and unconditional fact is that Guaranteed Buyer is the first and only state-owned enterprise in the electricity market that has introduced the publication of a green energy trading calendar for a month in advance," the state-owned enterprise emphasized.

In total, since the beginning of 2022, Guaranteed Buyer has held 26 auctions for the sale of green electricity, and in 2021 – 42 auctions. Since the start of the auctions, 115 companies have become winners in them.