Press centre News

Yuriy Tatarinov, senior associate of the VEGAS LEX Energy Projects Group, has attended the annual Power Gen Russia exhibition, where he discussed how the consumers’ payment discipline influences thermal energy companies’ appeal as an investment destination.

On March 4, 2015, the Council of Power Producers non-profit partnership held a conference on the Future of the New Thermal Energy Market Model; the event was organized as part of the annual Power Gen Russia* exhibition.

Yuriy Tatarinov, senior associate of the VEGAS LEX Energy Projects Group, delivered a report discussing how the consumers’ payment discipline influences a thermal energy company’s appeal as an investment destination. The existing legal framework for the industry does not provide generating companies with enough legal tools to appropriately respond to substandard performance of utility service providers or to fight schemes in which thermal energy consumers use various loopholes, which significantly complicate the financial situation of thermal energy producers.

In his report Mr. Tatarinov insisted on the need to improve the existing legislation by introducing laws protecting generating companies through higher penalties for delayed payments, direct producer-customer settlements (bypassing management companies) and other adjustments. The lack of attention to these issues jeopardizes the heating supply system reform aimed at modernizing the thermal energy sector and improving its efficiency, he said.

Other speakers at the meeting included representatives of major generating companies such as TGK-2, Quadra, Gazprombank, IES and others.

The participants discussed other important issues, such as making the industry more attractive for investors, the prospects of further reforms in the sector, and payment discipline of the thermal energy consumers.

***

*POWER-GEN Russia is a major traditional platform for constructive dialogue between Russian and international energy companies; a global-level conference and professional show for leading Russian and foreign companies’ products, which gathers over 5,000 visitors. Source: Power Gen Russia

For more information on VEGAS LEX’s services in the energy sector, please go here.