SBU exposed misappropriation in production of green power

The SBU exposed an unlawful mechanism of misappropriation of budget funds. In Cherkasy region, a local entrepreneur set up his own solar panels but registered them as 100 separate. It allows him to sell electricity without license and under the simplified procedure. The experts estimated his damage to the state budget over UAH 40 m. (USD 1,494,000).

Allegedly, the perpetrator organized the unlawful scheme in 2014. He used a rule in the law that enables every citizen to produce their own green electricity and sell it to the government. According to the legislature, a private household should not have a capacity of more than 30 kw. If you do not meet standards and the capacity is higher you need to issue additional permissions, get verified and receive payment at a different rate.

So, the offender decided to evade legislature and instead of registering one company he started to sell electricity on behalf of 100 private households. Furthermore, the perpetrator failed to follow the required standards. According to the documentation, the solar panels were set up on the territory without residential or any other buildings.

In 2019 -2020, the unlawful scheme without license and under the simplified procedure allowed him to receive payment from government at a green tariff.

The National Commission for State Regulation of Energy and Public Utilities specialists noted that such illegal scheme has a negative impact on the stability of electricity supply in Ukraine and worsen the quality of electricity supply to the citizens.

The SBU jointly with the National Commission for State Regulation of Energy and Public Utilities stopped the illegal scheme of over UAH 1.5 m. (USD 56,000).

The investigation is ongoing to prosecute those involved into the illegal activity.