In 2024, the regulation of the energy market in Ukraine underwent changes aimed at improving the regulatory framework and integrating it with European standards
In particular, the NERC adopted Resolution No. 178 dated January 24, 2024. This innovation helps to increase flexibility and stability in the energy market, providing attractive conditions for investors and stimulating the development of green energy in Ukraine.
The specialists of the Natural Resources and Energy industry group of BDO in Ukraine analyzed the main differences between the NERC resolutions of 2019 and 2024:
On 27.03.2024, the NERC approved the Requirements for Ensuring Integrity and Transparency in the Wholesale Energy Market, which were developed to comply with the requirements of the Law of Ukraine “On Amendments to Certain Laws of Ukraine on Prevention of Abuse in Wholesale Energy Markets” dated June 10, 2023 No. 3141-IX, which transposed EU Regulation No. 1227/2011 on Integrity and Transparency in the Wholesale Energy Market (REMIT) into Ukrainian legislation.
The approval of these Requirements was preceded by an open and transparent discussion of their draft with all stakeholders, including participants in the natural gas and electricity markets. The document was also approved by the Antimonopoly Committee of Ukraine.
Also, on 08.05.2024, the NERC published a draft of improved License Terms for the Electricity and Natural Gas Market for REMIT requirements to receive comments and suggestions. It provides for the alignment of the requirements of the License Terms with the provisions of the Law of Ukraine “On Amendments to Certain Laws of Ukraine on Prevention of Abuse in Wholesale Energy Markets”, in particular, the following requirements for licensees are established:
According to BDO in Ukraine, in 2024, the regulation of the Ukrainian energy market is undergoing stages of improvement to integrate with European standards. The NERC Resolution No. 178 of January 24, 2024 introduced a market premium mechanism and updated the electricity purchase and sale agreements under the “green” tariff. Approval of the Requirements for Integrity and Transparency in the Wholesale Energy Market on March 27, 2024, defined the rules for manipulation and restrictions on insider information. The License Terms for market participants were also improved. These changes will help increase the investment attractiveness and transparency of the Ukrainian energy market. By harmonizing with European standards, the Ukrainian market is becoming more open and predictable for foreign investors, which stimulates the development of renewable energy sources and technological innovations.
Contact us if you have additional questions.
The material was prepared at the request of Liga:Zakon
The specialists of the Natural Resources and Energy industry group of BDO in Ukraine analyzed the main differences between the NERC resolutions of 2019 and 2024:
- The words “and at an auction price” were deleted, and “purchase of services under the market premium mechanism” was added.
- The Standard Agreement for the Sale and Purchase of Electricity under the “green” tariff has been updated, and the Standard Agreement on the provision of services to increase the share of electricity production from alternative sources has been revised.
- The Standard Agreements on the Market Premium Mechanism and Integration of Renewable Electricity Producers into the Balancing Group were approved.
- The NERC Resolutions No. 2803 and No. 2804 are no longer in force.
- Amendments were made to the Market Rules and Regulation of the Guaranteed Buyer.
On 27.03.2024, the NERC approved the Requirements for Ensuring Integrity and Transparency in the Wholesale Energy Market, which were developed to comply with the requirements of the Law of Ukraine “On Amendments to Certain Laws of Ukraine on Prevention of Abuse in Wholesale Energy Markets” dated June 10, 2023 No. 3141-IX, which transposed EU Regulation No. 1227/2011 on Integrity and Transparency in the Wholesale Energy Market (REMIT) into Ukrainian legislation.
This document defines:
- a list of practices that may constitute manipulation or attempted manipulation of the wholesale energy market
- restrictions on the treatment of insider information in the wholesale energy market
- requirements for the publication (disclosure) of insider information
- requirements for persons, who professionally organize transactions with wholesale energy products
- signals that may indicate signs of abuse in the wholesale energy market
- provisions on the NERC’s cooperation with the Council of Regulators of the Energy Community.
The approval of these Requirements was preceded by an open and transparent discussion of their draft with all stakeholders, including participants in the natural gas and electricity markets. The document was also approved by the Antimonopoly Committee of Ukraine.
Also, on 08.05.2024, the NERC published a draft of improved License Terms for the Electricity and Natural Gas Market for REMIT requirements to receive comments and suggestions. It provides for the alignment of the requirements of the License Terms with the provisions of the Law of Ukraine “On Amendments to Certain Laws of Ukraine on Prevention of Abuse in Wholesale Energy Markets”, in particular, the following requirements for licensees are established:
- conduct operations with wholesale energy products after registration as a participant in the wholesale energy market
- implement and maintain effective mechanisms, measures and procedures to ensure integrity and transparency in the wholesale energy market
- provide the NERC through the data transmission administrator and/or independently, if the licensee has acquired the status of a data transmission administrator, with information on economic and trade operations in the wholesale energy market related to wholesale energy products, including offers (bids) and basic (fundamental) data.
According to BDO in Ukraine, in 2024, the regulation of the Ukrainian energy market is undergoing stages of improvement to integrate with European standards. The NERC Resolution No. 178 of January 24, 2024 introduced a market premium mechanism and updated the electricity purchase and sale agreements under the “green” tariff. Approval of the Requirements for Integrity and Transparency in the Wholesale Energy Market on March 27, 2024, defined the rules for manipulation and restrictions on insider information. The License Terms for market participants were also improved. These changes will help increase the investment attractiveness and transparency of the Ukrainian energy market. By harmonizing with European standards, the Ukrainian market is becoming more open and predictable for foreign investors, which stimulates the development of renewable energy sources and technological innovations.
Contact us if you have additional questions.
The material was prepared at the request of Liga:Zakon
