In 2015, work has begun on preparation of a draft Law of Ukraine On the Electricity Market of Ukraine.
The purpose of this draft law is to harmonize Ukrainian legislation with requirements of the European Union’s Third Energy Package, and implement competitive mechanisms of the electricity market’s functioning.
In particular, it envisages various electricity purchase-sale mechanisms. They include bilateral contracts, day-ahead market, intraday market, balancing market and ancillary services market.
New market operation (including pricing) rules are being developed. The role and rights of consumers will be enhanced, as they will have the real right to select and replace the electricity supplier.
The passage of this law will become an indispensable precondition for structural changes in Ukraine’s power generating sector and a foundation for modernization of this sector and integration of Ukraine’s electricity market into regional energy markets, with subsequent accession to the pan-European energy market.
When implementing a new model of electricity market, the leading role is assigned to two key operators: Ukrenergo NPC SE (the future transmission system operator) and Energorynok SE (market operator).
Under the action plan on implementation of a new model of electricity market, Ukrenergo develops:
– a draft Code of Power Grids, and participates in development of the Commercial Metering Code;
– draft Rules of the Electricity Market;
– a connection fee methodology;
– the limitations management and handling capacity distribution procedure;
– the procedure of preparing a transmission system development plan for the next 10 years.
One of the key preconditions for formation and intensification of competition in the wholesale and retail electricity markets is separation of monopolistic activities (transmission, distribution) from competitive activities (generation, supply).
The draft Law of Ukraine On the Electricity Market of Ukraine, the passage of which would lay a legal foundation for realization of the separation process, envisages certification of the transmission system operator and monitoring of compliance with requirements regarding separation and independence of the transmission system operator.
To start the process of Ukrenergo’s certification as the transmission system operator, the company’s assets have been reevaluated and the company’s corporatization went underway.
On 13 April 2017, the Verkhovna Rada of Ukraine has passed the law on electricity market.