People's deputies registered a draft law on the unification of the electricity markets of Ukraine and the EU

The People's Deputies have registered the Draft Law on Amendments to the Laws of Ukraine on Unification of the Electricity Markets of Ukraine and the European Union. This is stated on the official web portal of the Verkhovna Rada.

Initiators: Andriy Zhupanin, Andriy Gerus, Inna Sovsun, Maksym Khlapuk, Anatoly Kostyukh, Dmytro Pryputen.

"The main goal of the draft Law of Ukraine "On Amendments to the Laws of Ukraine Regarding the Unification of the Electricity Markets of Ukraine and the European Union" is to create a legislative basis for the full market integration of Ukraine as a Contracting Party of the Energy Community to the single European electricity market based on the principle of reciprocity through transposition and further implementation of the integration package of legislation of the Energy Community in the field of energy. The implementation of the Integration Package is also aimed at implementing a cost-effective transition to the use of clean and sustainable energy sources while simultaneously ensuring security of supply and availability of electric energy for all consumers," the explanatory note reads.

As stated in the explanatory note, the changes include:

1) a significant addition and clarification of the terminology in order to bring it into line with the legislation of the Energy Community;

2) key provisions necessary for regulatory and legal support of regional integration of markets and cooperation at the regional level:

- determination of the role of the European Union Agency for the Cooperation of Energy Regulators (ACER) in the Ukrainian electricity market, namely the binding nature of ACER's decisions for the Regulator and market participants, in particular on the functioning of interstate power transmission lines between Ukraine and EU member states, the necessity consideration of ACER's conclusions and recommendations by the Regulator and market participants to whom such conclusions and recommendations are addressed, the possibility of appealing ACER's decisions;

– addition and clarification of tasks and powers of the Regulator regarding regional and bilateral cooperation with ACER, the ECRB, regulatory bodies of the EU member states and the Contracting Parties of the Energy Community; ensuring the implementation of ACER and ECRB decisions, joint performance of functions related to the functioning of the region, the functioning of energy systems and monitoring of the activities of regional coordination centers;

– introduction into Ukrainian legislation of the concept of pan-European, regional and national rules, procedures, conditions, methodologies (methodologies) (terms and conditions or methodologies, TCM), which are applied and/or developed by operators of transmission systems and/or nominees in accordance with the legislation of the Energy Community market operators and are approved by ACER, ECRB or the Regulator (in particular, the draft Law enshrines the authority of the Regulator to approve and maintain the relevance of the list of pan-European and regional TCMs, the obligation of market participants to use pan-European TCMs approved by ACER, the obligation of the transmission system operator and nominated(s) ) of the market operator(s) regarding the development and coordination of regional TCMs, conducting consultations with interested parties and submitting regional TCMs for approval to the Regulator);

3) the main legal, organizational and technical conditions for connecting day-ahead and intraday markets, functions, rights and obligations of the nominated market operator as an entity that ensures the connecting of markets, as well as requirements for the appointment of a nominated market operator, definition the main functions of the central counterparty and sales agent;

4) establishing provisions on the possibility of interstate balancing, cross-border exchange and/or sharing of power reserves for frequency regulation, as well as related additional functions, rights and obligations of the transmission system operator as an entity that ensures energy system balancing and operational security;

5) implementation of a mechanism for planning preparedness for the risks of disruption of the security of electric energy supply, prevention and overcoming of crises in the electric energy sector, determination of the central body of executive power, which ensures the formation and implementation of state policy in the electric energy complex, by a competent body responsible for the performance of tasks related to with the prevention and overcoming of crises in electric energy;

6) the possibility of introducing mechanisms for ensuring capacity, which are used to eliminate problems with the sufficiency of resources identified during the assessment of the sufficiency of resources;

7) strengthening consumer protection measures, in particular by introducing the concept of energy poverty, changing the approach to the protection of vulnerable consumers (through assistance in the implementation of energy efficiency measures, ensuring wider consumer access to renewable energy sources, as well as other measures within the general social policy), determination of conditions for state intervention in setting prices for electricity supply, establishment of minimum requirements for payment documents (bills) and payment information, creation of tools for comparing offers of electricity suppliers;

8) strengthening the role of consumers, in particular by expanding opportunities for consumers to use demand response resources (independently, through an aggregator, by providing flexibility services), regulating the possibility of entering into a contract with a dynamic price, introducing the concept of a public energy association.

In particular, the draft Law also specifies that the tasks of the Regulator additionally include:

- coordination with the regulatory bodies of the member states of the European Union and the countries-parties of the Energy Community in order to ensure compliance by all market participants, the European Network of Electric Power Transmission System Operators, the Coordination Group of Distribution System Operators of the Energy Community, regional coordination centers with their obligations in accordance with the legislation of Ukraine, acts of legislation of the Energy Community in the field of energy and decisions of the Council of Regulatory Bodies of the Energy Community;

- implementation of network codes and guidelines in the electric energy complex with the help of national measures or, if necessary, coordinated regional measures or measures at the level of the Energy Community;

- implementation of decisions of ASER and the Council of Regulatory Bodies of the Energy Community;

- ensuring the absence of cross-subsidization between the activities of transmission, distribution, supply of electric energy and other types of activities in the field of electric power or in other sectors of the economy.

Also, additional powers of the Regulator are defined:

- establishment of criteria for appointment, appointment, suspension of activity and revocation of appointment of a nominated market operator, as well as establishment of the passporting procedure of a nominated market operator (NEMO);

- approval of the tariff for the services of the nominated market operator or the method of formation of such a tariff before the start of its application in the case of the appointment of only one nominated market operator in the trade zone (zones) of Ukraine;

- assessment of the reasonableness and approval of the transmission system operator's costs incurred by him in the case of a single connection of markets, by including such costs in the relevant tariff or using other mechanisms determined by the Regulator;

- approval of the transmission system operator's contributions to the expenses of the nominated market operator for the creation, change and functioning of a single market connection in the case of their submission to the Regulator for approval;

- making a decision on the start of operation of a single market connection and others.

Also, it is determined that the minimum and maximum price limits for electric energy during trading and clearing (settlement) in all time periods should not be applied in the electric energy market, including prices for balancing electric energy and prices for imbalances in electric energy, except for technical price limits for trading , which can be applied within the time period of balancing, as well as within the time period "day ahead" and the intraday time period in accordance with the second part of this article.