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  • Ukrenergo discussed the prices of emergency electricity supply

    On 23 August, Ukrenergo held an open discussion on the price of electricity for emergency supply between the system operators of neighbouring countries.

    Emergency supply is provided / received by neighbouring power systems if there is a threat or occurrence of such a mode of operation of the power system, which leads to a forced restraint of electricity consumption due to the switch off of generating and / or power equipment. In the event of an emergency, the power system always activates its emergency power reserve, i.e. the amount of capacity required for compensating for the emergency decrease in generating capacities. In addition, the operating personnel takes all necessary regulated measures to localise and liquidate the accident.

    At the same time, there are cases when the taken measures and the reserves are insufficient, and in order to maintain the integrity of the grid, it is necessary to apply for the emergency supply from the power systems of neighbouring countries in the form of electricity transmitted by interstate power transmission lines.

    The price of this type of electricity per kWh was discussed during the open event.

    “Electricity supply on a contractual basis is a common European practice. This is a key tool for preventing and eliminating external factors reducing the grid’s reliability, one of the most important elements of energy security,” said Andrii Nemyrovskyi, Deputy CEO for Market Development and IT at Ukrenergo. “Within ENTSO-E, the price of electricity supplied in the framework of emergency supply is quoted on the local balancing markets. It is constantly changing and not fixed. In Ukraine, Moldova and Belarus, prices are set by national regulators,” he noted.

    Previously, SE “Energorynok” was responsible for concluding agreements on emergency supply on the terms of exclusively contractual prices.

    “Starting from the entry into force of the Law of Ukraine “On Electricity Market,” the conclusion of agreements on emergency electricity supply is entrusted to Ukrenergo as the Settlements Administrator,” noted Head of Market Participants Foreign Economic Operations Accounting of Ukrenergo Mykola Podhornyi. “At the moment, Ukrenergo has previously agreed the prices for emergency electricity supply with the transmission operators of neighbouring power systems at the level of those effective earlier,” he said.

    In addition, according to the results of the analysis of using the emergency supply over the past 7 years, the proposed price will in no way affect the electricity tariff for the final consumer if the dynamics of previous years continue. And this accounts for only 0.014 percent of the total electricity volume in the wholesale electricity market.

    According to the results of discussions and approvals of the draft price of emergency electricity supply, received from a number of regional state administrations, the participants prepared the minutes. All materials will be submitted to the NEURC for further consideration and approval.

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