Economy 2021-09-15T08:46:38+03:00
Ukrainian news
Rada To Introduce New Model Of Electricity Market

Rada To Introduce New Model Of Electricity Market

Verkhovna Rada, draft law, electric energy, energy market

The Verkhovna Rada has adopted in first reading the draft law on the electric energy market, coordinated with the Energy Community Secretariat, which provides for introduction of a new market model.

Draft law No.4493 received votes of 237 Members of Parliament, while 226 votes enough for approval, Ukrainian News Agency reports.

The new model will consist of the bilateral agreements market, "for 24 hours ahead", diurnal, balancing, retail and also the market of ancillary services.

The bill adds a new market participant: trader, which can be any economic entity buying electric energy for the only purpose of reselling it except selling to the ultimate customer.

The draftsmen think that existence of traders at the electricity market has to have a positive effect on the market liquidity and to help bound sizeable fluctuations of prices at the market.

The bill also institutes such special obligations as buying electricity at the "green tariff" and performing functions of "last hope" suppliers.

Besides, the bill makes provisions for completely meeting the requirements of the Third Energy Package of the European Union for the legal and organizational separation of the activities involving distribution and transmission of electric energy from other types of activity.

The draftsmen opine that this will eliminate cross-subsidization, ensure market competition and enhance economic performance of the market players and the energy industry in general.

As Ukrainian News Agency earlier reported, Vice-President of the European Commission for the Energy Union Maros Sefcovic says adoption of laws on the National Commission for State Regulation of Energy and Utilities and on the electricity market is necessary for the European Commission to provide another tranche of EUR 600 million in Macro-Financial Assistance.

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