Electricity trading companies receive millions in fines for violations

The National Energy and Utilities Regulatory Commission considered the issue of the results of unscheduled on-site inspections regarding compliance with the requirements of the legislation in the field of the electricity market functioning at Zaporizhzhia Energy Alliance LLC, YE Energy LLC, Stella Energy LLC, TET Group LLC and SV Energy LLC.

Based on the results of the inspections, it was discovered that the abovementioned companies:

  • violated the requirements of the licensing conditions for economic activities for trading and electricity supply to the consumer, other regulations governing the functioning of the electricity market;
  • failed to comply with limiting the total (maximum) volume of electricity sales on the day-ahead market in the settlement period (month) in the amount of up to 10 percent of the registered volume of electricity purchases under bilateral agreements from electricity producers and/or a guaranteed buyer in the relevant period;
  • concluded agreements containing provisions contradicting the Law of Ukraine "On the Electricity Market";
  • did not adhere to the obligation to carry out the sale and purchase of electricity under bilateral agreements and in organized segments of the electricity market;
  • did not adhere to the licensee's obligation to comply with NEURC decisions within the time limits established by the relevant decision and legislation, etc.

NEURC applied to the aforementioned energy companies a maximum fine of UAH 1 million 700 thousand for violation of the requirements of the legislation in the field of the electricity market functioning.

To recap, NEURC increased the electricity transmission tariff for 2022.

Earlier, the Ministry of Energy promulgated a bill on temporary administrations in case of a threat to the security of electricity supplies.

Tags: legislation, NEURC, electricity market, DAM, price, The National Energy and Utilities the Natuonal Regulatory Commission, energy sector, electricity consumption, supplier,

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