President signed a decree on the implementation of the decision of the NSDC in electricity market

The President of Ukraine Volodymyr Zelenskyi signed a decree on the implementation of the decision of the National Security and Defense Council to neutralize threats (major problems) in the electricity market.

The corresponding Presidential Decree №452 / 2021 came into force on August 28, 2021.

The Cabinet of Ministers of Ukraine was set a task:

until September 11, 2021, jointly with the together with the National Energy and Utilities Regulation Commission (NEURC), State Property Fund of Ukraine (SPFU), AMCU and the National Security and Defense Council (NSDC):

- to analyze the methodology for assessing the assets of regional electricity distribution network operators, district heating companies, and, based on the results, to make proposals for adjusting the methodology with further adjustment of the relevant distribution tariffs;

- to develop a mechanism for introducing a temporary administration into a regional electricity distribution network operator company in case of threat of violation of security of electricity supply and / or violation by such an entity its license requirements for economic activity;

The CMU must to work out and submit a set of draft laws, including:

by September 30, 2021

- a draft law on corporatization of NNEGC Energoatom;

by October 31, 2021:

- draft amendments to some laws of Ukraine on stimulating the production of electricity from renewable energy sources (RES) on a market basis and granting the right to producers of electricity to leave the balancing group run by the SE Guaranteed Buyer and freely sell electricity under a Feed-in-Premium mechanism in the electricity market of Ukraien;

- a draft law on the authority of the Ministry of Energy in terms of ensuring the security of electricity and natural gas supply, reliable operation and sustainable development of the Integrated Power System of Ukraine, Gas Transmission System, and Gas Distribution Networks of Ukraine;

by December 31, 2021

- draft amendments to the law on improvement of conditions for support of ‘green” electricity production with household RES generating installations via r introduction of the Net metering mechanisms;

- draft amendments to the law on sale of electricity under bilateral contracts at auctions in order to introduce equal sales opportunities for public and private companies, and to increase the transparency and competitiveness of the market of bilateral contracts by creating a full-fledged exchange trades with a transparent auction mechanisms;

The CMU of Ukraine was also tasked by August 31, 2021:

- to determine a capacity fee for electricity generating companies;

- revise the National Plan to reduce emissions from combustion plants; by September 30, 2021 - to develop and approve a plan to establish the fair value of electricity for household consumers;

- to ensure the transition from the commodity to the financial mechanism in the public special obligations (PSO) from October 1, 2021, in particular, taking into account the imposition of such PSO on the transmission system operator and regional electricity distribution network operating companies;

- to introduce an effective mechanism to enhance responsibility for free consumption of electricity and untimely payments between participants in the electricity market;

- to ensure timely publication of the results of monitoring the electricity market, its segments, and the audit of the market management system with the publication of the results of such an audit;

- to complete Environmental Impact Assessment and trans-border impact procedures, as well as to hold relevant consultations on the construction of the Khmelnytskyi NPP’s Units №3 and № 4

The CMU jointly with the SPFU must: by August 31, 2021:

- exclude from the privatization the interest block of shares held by the state in the regional electricity distribution network companies with the subsequent determination by the Ministry of Energy of the governing body of such interest blocks of shares; complete the implementation of measures to separate the activities of state-run power distribution companies and universal service providers;

- transfer state-run universal providers to the management by the NNEGC Energoatom; Furthermore, by December 31, 2021, the CMU jointly with National Securities and Stock Market Commission (NSSMC) and the National Bank of Ukraine (NBU) must:

- approve the concept of introduction and development of the market of "green" bonds and approve a plan of measures for its implementation; - introduce price caps on day-ahead and intraday electricity markets at the level of the maximum price of electricity produced by generating units of the Integrated Power System.

13:20 / 9 September 2021

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