Two of the committees are today in our focus:
Committee on Legislative Support of Law Enforcement
…recommends the Verkhovna Rada of Ukraine to take on the first and second readings a draft bill constituting a criminal liability against persons empowered to act as home rule agents for misuse of their weight (influence, public position). The draft bill No.7104 amending the Criminal Code of Ukraine correspondingly, is to now make a home rule (local government) agent criminally liable in case of the above misuse.
Committee on Fuel and Energy Complex, Nuclear Policy and Nuclear Safety
A new model of the electricity market may only be successfully introduced by the synergy of the entire line of the market actors, including the Committee on Fuel and Energy Complex, Nuclear Policy and Nuclear Safety, the Cabinet, the National Commission for State Regulation of Energy and Public Utilities of Ukraine, etc. whose reps have recently staffed the New Electricity Market Coordination Centre. This reasonable statement was announced at a sitting of the Wholesale Electricity Market Board, where lots of the pressing e-power market issues were dealt with, including introduction of the new e-market model, intra-actor backlog of debts, and a narrow e-branch aid from the state. The sitting has resulted in the resolution to start elaboration of the needful legislational initiatives aimed to streamline introduction of the new e-power market model. The law work is supposed to be pooled with experts from a range of the state and the sectoral establishments.
Worthy of note
Ukraine`s Parliament (Verkhovna Rada) approved the Law of Ukraine On the Electricity Market which introduces a series of reforms to liberalize the country’s energy market in April 2017. The law No. 4493 is to create more market-oriented relations between all players in the energy market and will enable end consumers to buy power from several providers.
The Energy Community, which is an international organization consisting of the EU and several non-EU eastern European countries including Ukraine, and aiming to extend the EU’s internal energy market to southeastern Europe and the Black Sea region, has welcomed the approval of the new law, claiming it was a necessary step to bring the Ukrainian legal framework into compliance with the requirements of the European Union’s Third Energy Package, which came into force in September 2009.
The Electricity Market Law envisages transfer from a single buyer model market, when the State Enterprise “Energorynok” purchases all electricity in the country and then sells it to regulated and non-regulated distributors, to liberalized market. In addition to the Law of Ukraine on the Regulator, the Electricity Market Law details the Regulator’s vast powers in the new electricity market, in particular licensing, approval of different market rules and related regulations as well as methodology for tariff formation and tariffs.
As expected, the Electricity Market Law will create conditions for full implementation of RAB tariff methodology and will be a trigger for privatization of grid distributors.
In accordance with EU Third Energy Package, the Electricity Market Law unbundles transmission and distribution of electricity.
With respect to renewables, the Electricity Market Law introduces responsibility of the respective producers for hourly imbalances at the day-ahead market where they will sell electricity at “green” tariff. It is planned that the responsibility for solar and wind will be introduced gradually with increase by 10% annually starting with 2021 until 2030 with 20% tolerance for wind 5% tolerance for small hydro as well as 10% tolerance for solar.
The Coordination Centre for the
introduction of a new electricity market was established in line with the decision
of the Government. Vice Prime Minister of Ukraine Volodymyr Kistion, who is responsible
for energy issues in the Cabinet of Ministers of Ukraine, was appointed the head
of the Coordination Centre. The abovementioned Coordination Centre is an advisory
and consultative body under the Cabinet of Ministers of Ukraine, which was established
pursuant to the final provisions of the Law of Ukraine "On the Electricity
Market".
A two-year span of rebound is provided for by the law. The new e-market model is supposed to come into full effect from July 1, 2019.