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  • UKRENERGO BACKS THE REGULATOR ON THE DECISION OF PAYING THE TRANSMISSION TARIFF BY EXPORTERS

    NEURC has amended the Transmission Network Code (TNC), and eliminated the misinterpretation by some market participants on the exporters’ obligation to pay the tariff for electricity transmission via the trunk power grids.  

    Finally, the TNC contains the provision that the electricity transmission service is provided inter alia for exporting traders. It also specifies the scope of this service is determined for traders based on the volume of electricity exports.  It is worth reminding that Ukrenergo’s transmission tariff is determined by the Regulator based on the exports.

    “The obligation to pay the transmission tariff rests with the exporters according to the Law of Ukraine “On Electricity Market” and the secondary legislation, in particular, the Transmission Network Code. After all, it is impossible to export electricity without using the transmission network. In fact, these amendments to the TNC specify the interpretation of the norms currently in force. The service is provided and shall be paid for”, said Deputy Chairman of NPC Ukrenergo Andrii Nemyrovskyi.

    As reported, in ENTSO-E, there is ІТС (Inter-Transmission System Operator Compensation) mechanism. It allows transmission system operators to compensate infrastructure costs and technological losses of the power in the grids when exporting without participation of traders. Ukrenergo applied for accession to ІТС mechanism in May 2018. However, the consideration of the application was adjourned due to incomplete implementation of the EU Third Energy Package.

    One of the important conditions for implementation of the EU Third Energy Package is certification of Ukrenergo as an independent transmission system operator. Ukrenergo sent all necessary documentation to NEURC in August 2019 and received a preliminary positive decision of the Regulator enshrined in the Resolution №2094 dated October 07, 2019.

    However, the certification of the TSO requires a number of conditions to be met, and these conditions, in their turn, require certain legislative changes. In particular, the Energy Community Secretariat recommends amending the Law of Ukraine “On Electricity Market” and providing the possibility for the certification of the TSO according to ISO (Independent System Operator) model.

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