The Initiative of Changing Subjection of Ukrenergo Is not Well-timed – Energy Community

The Ministry’s of Energy initiative of changing the subjection of TSO NEC Ukrenergo from the Ministry of Finance to the Ministry of Energy is not well-timed, as Ukraine should solve a row of urgent problems in the electricity market. Such a point of view in the comment for ExPro agency expressed the Director of Energy Community Secretariat on December, 21.

“The initiative is not well-timed. Currently, Ukraine has to solve several other very urgent issues in the electricity sector,” he said. In addition, the Director mentioned the subjection of Ukrenergo by the Ministry of Finance is in line with the European law.

Talking about the key problems, should be solved on the way to integration to ENTSO-E, Kopach mentioned certification of Ukrenergo and implementation of the Third Energy Package.

“Ukrenergo was twice rejected as ENTSO-E Observer. The first condition for Ukrenergo is certification (by the National Energy Regulator - NEURC and by the Energy Community Secretariat) and the second is full implementation of the Third Energy Package in Ukraine. In case of electricity, there are some elements still missing: socially vulnerable customers are not defined yet, transmission and dispatch tariffs are not fully compliant, RAB methodology needs to be improved etc.,” said Kopach.

According to the Director of Energy Community Secretariat, the Ministry of Energy should lose the ownership rights of generating companies. Otherwise, certification of Ukrenergo is not possible.

As ExPro agency earlier reported, on December, 11 the Ministry of Energy declared the initiative to get back the ownership rights of Ukrenergo. The Ministry also suggested delivering the ownership rights of generating and supplying companies to other executive authorities. Today Ukrenergo is subordinate to the Ministry of Finance.