The Verkhovna Rada approved at first reading (as a basis) draft law 3364-1-d enabling the certification of NPC Ukrenergo as a European transmission system operator (TSO) according to the ISO model (independent system operator). This is another step that brings Ukraine closer to the integration of Ukraine’s integrated power system (IPS) into the ENTSO-E Continental Europe energy network.
Ukrenergo welcomes this decision and thanks for the fruitful cooperation the Committee on Energy, Housing and Communal Services, and all MPs–representatives of factions and parliamentary groups who supported this legislative initiative.
TSO certification is recognition of its operation according to European standards and constitutes one of the key prerequisites to the transition to synchronous operation of the Ukrainian power system with the European network.
The current Law of Ukraine “On the Electricity Market” provides for the certification of the transmission system operator only according to the OU (ownership unbundling) model based on which it shall maintain ownership of the trunk power grids. However, in Ukraine, the transmission grid is state-owned and cannot be owned by a legal entity, even if such an entity is 100% state-owned, like Ukrenergo. The changes introduced by draft law 3364-1-d will make it possible to certify Ukrenergo according to the ISO model, where the state keeps ownership of the grid but, at the same time, the company becomes the system operator of a European standard.
Once draft law is 3364-1-d is fully adopted, NPC Ukrenergo will be in a position to submit to the NEURC the necessary package of documents for the company’s certification as an independent transmission system operator under the Law of Ukraine “On Electricity Market” and EU Directive 2009/72 implementation of which is part of Ukraine’s international commitments.
It will be recalled that the day before, the European Parliament in its Resolution on the implementation of the EU–Ukraine Association Agreement fully supported Ukraine’s integration into ENTSO-E and called for completing the reform of the Ukrainian electricity market primarily by strengthening the independence of the transmission system operator NPC Ukrenergo.
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