Ukraine Energy Market News: Lawyer Comments

The new electricity market in Ukraine changes every hour. For example, legislators adopt or are only planning to adopt amendments to the Law on Green Tariff, change tariffs for electricity transmission, or the head of the Ministry and the State holds the course for relations with business in the energy sector.

Usually, there is no enough time to stay in line with such events, especially if the current work of the company constantly requires communication with consumers or concluding agreements with contractors.

Very often businessmen want to stay one step ahead of changes in the electricity market before they are introduced, not after they have been adopter. But even after the adoption of certain amendments, it is not always clear how it works in practice, what needs to be done to make this or that mechanism really start its work in business.

Since many of our Clients are interested in this topic, we decided to talk about the latest news in the energy sector of Ukraine and give our legal analysis.

If you are interested in any news, or you need the assistance of an energy lawyer, please contact us for advice.

Read also: Green Tariff In Ukraine

Ukrenergo stopped auctions for additional services due to changes in the method of pricing for such services

This does not mean that the situation is critical, as there is already the National Energy and Utilities Regulatory Commission (NEURC) project on a new calculation method. Therefore, today we offer our assistance even at the stage when the NEURC makes changes to the relevant resolution and can explain what it will mean in the future.

We advise you to take care of this issue today, in advance, so that you can be ready that the market of additional services will temporarily suspend its activity and be able to change your strategy at the auctions of the Wholesale Electricity Market.

Changes to the PPA and pre-PPA agreements are planned to be made in the coming month

Many are afraid that they will need to resign the agreements with their counterparts. In fact, it is not necessary, but you need to understand what has changed and what these changes will affect.

The lawyer will help you save your valuable time and understand the essence of the agreement, explain possible weaknesses and risks of signing new forms of such agreements. As if you sign an agreement with the “wrong” contractor or do not notice the “weak spot” of the agreement, you can later fail to get money for the electricity produced.

The Law on Green Tariff may also be amended

As of today (April 2020), the text of the draft law is not yet available, but an experienced lawyer will immediately say that if any amendments are planned to be made to the already mentioned PPA agreements, it is worth getting ready and very carefully follow the changes in the legislative field. Most likely, we will see a significant reduction in the the green tariff price and the introduction of auctions mechanism, which will definitely create competition.

Under current conditions, such auctions may be a completely unfamiliar and underdeveloped area by our legislators, so we warn you against reckless actions without prior consultation with a specialist.

Read also: How To Purchase Electricity On The Wholesale Market Of Ukraine?

The energy business often faces different questions, both at the beginning of its operations and in the process, including:

  • What is the procedure for signing agreements on the electricity market?
  • What is the procedure for commissioning of Renewable Energy Resources (RER)?
  • How to keep Automatic System for Commercial Accounting of Power Consumption (ASCAPC)?
  • How is it better to be with Commercial Metering Service Providers (CMSP): to become the service provider or to use services of other company?
  • How to form a list of Fiscal Metering Points (FMP)?
  • What documents should be submitted to the Commercial Metering Administrator (CMA)?

As a rule, in order to understand only the abbreviations of some of these words, it is necessary to search them well in the laws or market rules and commercial accounting rules.

Do not waste your time, but use the services of professionals. Your result is our reputation.

Publication date: 21/04/2020

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