The Bill (Reg. No. 1371) envisages extended definition of the term "power suppliers" by way of including electric power export to their possible operations.
The People´s Deputy, Mykola Martynenko, initiator of the Bill, calls to establish that access to the facilities of interstate power networks of Ukraine is granted on terms of auction for the period not exceeding one year. The auction holding procedure is ratified by the Cabinet of Ministers of Ukraine.
Pursuant to the Bill, for electric power export, the power suppliers purchase necessary amount of electric power at the wholesale market for the price, not lower than the market-formed wholesale price. Transfer of export oriented electric power is to be performed on the grounds of agreement with the licensee who performs transfer of electric power by interstate power networks. Standard form of such an agreement is approved by the National Commission on Regulation of Electric Energy Industry of Ukraine.
The licensee who performs transfer of electric power by interstate power networks is also to declare every quarter the information concerning facilities of interstate power networks, their current capacity, and available facilities of interstate power networks.
According to M.Martynenko, suggested regulation of electric power export and import can create extra budget revenue owing to tax payments in case of increased price of exported electric power. Marginal revenue of electric power enterprises can reach 1 billion Hryvnias per year.
Regarding other possible improvements, the author of the Bill emphasizes enhancement of competitive entrepreneurship in the field of electric power export, creation of legal prerequisites for integration of Ukraine´s united power network into trans-European power networks and protection of domestic commodity producers from unfair competition owing to dumping electric power export. Adoption of the Law will also create conditions for prevention of legal proceedings during possible revision of export contracts on electric energy that were concluded earlier.