NEURC has made changes in the electricity market

The National Energy and Utilities Regulatory Commission, at its meeting on August 6, adopted a number of decisions aimed at further liberalizing the electricity market, the press service reports.

So, based on the results of monitoring the situation on the market and in order to ensure a sufficient level of liquidity in the day-ahead market (DAM), amendments were made to the NEURC Resolution No.766 dated April 8, 2020, according to which:

  • the ability to submit block applications for the DAM has been cancelled;
  • the upper price-cap on the balancing market is set at the level of the price cap on the DAM;
  • the procedure for the purchase by Guaranteed Buyer of the volumes of electric energy on the DAM was regulated in order to minimize the volume of its negative power imbalance.

Such decisions should stimulate electricity suppliers to actively participate in the DAM since they set practically the only price-scoping level for all market segments.

Besides, amendments to the Resolution No.2896 of December 17, 2019, provided distribution systems (DSO) and transmission system operators (TSO) with the opportunity to be active participants in various market segments, reducing the percentage of mandatory purchase of electricity on the DAM in order to compensate for technological losses from 95% to 30 %. This decision should ensure the break-even activity of participants in the electric energy market, in particular, DSOs and TSOs.

“We are aligning the prices in the balancing market, equating them to the prices in the PCB market and the intraday market. These decisions come into force on August 9, 2021. We consider them a market move. At the same time, we urge market participants to be responsible, to actively participate in market segments in order to buy electricity at affordable prices, not inflated prices, as has happened recently. For its part, the Regulator is ready for dialogue with market participants and will consider any of their initiatives with the aim of price stabilization in the electricity market,” Chairman of NEURC Valerii Tarasiuk said.

To recap, NEURC has raised the ceiling prices for electricity.

Tags: legislation, NEURC, Ukrenergo, DAM, price, The National Energy and Utilities the Natuonal Regulatory Commission, infrastructure, transmission system operator, IDM, supplier

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