The Bill (Reg.No.1317) proposes improvements to the procedure of access to the International electric supply networks for the purpose of electric power export; and contributes to the development of competitive relations in exercising external economic activities in the power industry sector.
At the Committee meeting, the Chairman and Bill Sponsor, O. Martynenko, noted that the Bill extends the notion of ‘power suppliers´, by adding other possible functions, such as the export of electric power. It also establishes the auction conditions for access to Ukrainian International power networks for the purpose of electric power export, which shall be granted for a period not exceeding one year. The auction procedure shall be approved by The Cabinet of Ministers of Ukraine.
For the purpose of exporting electric power, electric power suppliers shall buy the required quantity of electric power in Ukraine´s electric power wholesale market, at a price at least equal to the wholesale price of the market.
The Bill envisages that that the transmission of electric power intended for export shall be effected on the basis of an agreement with the Licensee transmitting electric power through International power networks. A sample form for this Agreement shall be approved by Ukraine´s National Electric Power Control Commission. It must publicise, on a quarterly basis, information on the capacities of International power networks, their current load, and free capacities.
O. Martynenko believes that, ‘in the event that the cost of exported electric power shows the predicted growth, the suggested adjustment of the export and import matters of electric power can result in additional budget revenues from tax payments. The additional income of power companies can reach one billion Hryvnias annually.´ The passing of this Bill will also contribute to a better transparency of electric power export/import operations; a more active competitive business activity related to electric power export; enhanced financial stance of electric power entities; and creation of legal conditions for the integration of Ukraine´s joint power network with Trans-European networks.