Ukrenergo filed an appeal against the cancellation of the transmission fee for electricity export

NPC Ukrenergo has filed an appeal against the decision of the Economic Court of Lviv region on payment for the service for the transmission of electricity when exporting DTEK Zakhidenergo, the press service reports.

“We emphasize that when exporting electricity, the transmission system operator actually provides a service for the transmission of electrical energy, respectively, the income from these services is taken into account when calculating the transmission tariff. Failure to pay the tariff for part of the transmission services entails a shortfall in income and a deterioration in the financial situation of Ukrenergo, and in the long term will cause an additional increase in the transmission tariff, which will have to be carried out so that the company has the funds to fully finance its core activities,” the statement says.

The company also noted that in accordance with clause 5.1 of section XI of the Transmission System Code, approved by NEURC Resolution No.309 of March 14, 2018, the Agreement on the provision of services for the transmission of electrical energy establishes the obligations and rights of the parties in the implementation of its export , import and transit of electricity.

NEURC (in accordance with clause 14, part 1 of article 17 of the Law of Ukraine "On the National Energy and Utilities Regulatory Commission) provided an explanation, which stated that "since electricity exporters actually receive transmission services and use networks of the transmission system operator for transporting electricity to the energy system of the country to which electricity is exported, they must pay for transmission services in the amount of exported electricity.”

In order for Ukrenergo to be able to compensate the costs of transmission services when exporting electricity in accordance with the ITC (Inter-Transmission System Operator Compensation) mechanism, which operates in ENTSO-E countries, at least two main conditions must be met:

  • to introduce into the national legislation the norms of directives and regulations of the EU Third Energy Package, in particular, to adopt the draft Law No. 3364-1, which will allow Ukrenergo to obtain certification as an independent European system operator according to the ISO model (Independent System Operator)
  • to introduce the procedure of joint (coordinated) auctions for the distribution of interstate relations with system operators (OSO) of the ENTSO-E countries, on which Ukrenergo, NEURC and other parties of the process are currently working together. In particular, it is necessary for the parliament to pass bill # 3837, which solves the key issues of the implementation of joint auctions.

Tags: The Cabinet of Ministers, DTEK, contracts, tariffs, court, legislation, electricity, NEURC, EU, Top management, Ukrenergo, ETL, electricity market, foreign affairs, export, PSO, draft law, negotiations, price, agreement, volumes, The National Energy and Utilities the Natuonal Regulatory Commission, infrastructure, electricity transmission, transmission system operator, ENTSO-E, IPS, generation, The Ministry of Energy, economy, power grid, electricity consumption, supplier

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