Energy services contracts not yet a tool for mass use

22 december 2015 | Rossiyskaya Gazeta

‘Energy services contracts are promising, but so far they have not become a tool for mass use in housing resources, utilities, and the public sector. The situation in the industry sector and in the sector of implementing projects to upgrade street lighting in populated centers is somewhat better. However, even in these sectors, the number of national level contracts accounts for only hundreds, rather than tens or hundreds of thousands of units as it should be in conditions of continuous and sustainable increase in the cost of energy resources,’ said the expert.

Dmitry Khomchenko
Dmitry Khomchenko
Department for Sectors of Economy

By the way, the Analytical Center has collected and summarized data on the number of concluded and ongoing energy services contracts in all regions. So, there are some constituent entities of the Russian Federation which did not conclude any contract!

Of course, the process is going on with some difficulties. Even in rich years there were problems with financing energy services companies, but now the situation has worsened not only because of the unavailability of borrowed funds, but also due to sharp increase in the cost of equipment and materials. Some energy services projects are beyond the minimum profitability and many energy services contracts which had been close to conclusion were not signed.

‘Other problems of energy services companies are: customers are not ready to implement projects in the field of energy saving and energy efficiency, misunderstand energy services foundations, there is the lack of a complete legal framework regulating all issues in the market. For example, there are no developed procedures of recording in saving tariffs arising due to the transfer of heat supply sources to some cheaper fuel. This issue has been under discussion for many years,’ said the expert.

Source: Rossiyskaya Gazeta