On April 13, 2017, the Verkhovna Rada of Ukraine adopted the Law of Ukraine “On Electricity Market”.
The purpose of the new electricity market is to introduce competitive mechanisms for the electricity market functioning, ensure the free choice of counterparties and the consumer’s right to choose a supplier of electricity freely. The Law provides for various mechanisms for the purchase and sale of electricity, namely bilateral agreements, a day-ahead market and an intraday market. In order to ensure sufficient amounts of electricity necessary for real-time balancing of electricity production and import and electricity consumption and export, congestion management in the IPS of Ukraine, as well as financial settlement of electricity imbalances, the operation of the balancing market and the ancillary services market is provided.
Adoption of the Law is a prerequisite for structural changes in the Ukrainian electricity sector and constitutes a basis for the industry’s modernization and the integration of Ukraine’s electricity market into regional energy markets, with the subsequent coupling with the pan-European energy market.