The new electricity market has started working in Ukraine

The new market provides for the introduction of a new model of relations between suppliers and consumers of electricity. In particular, the only buyer and seller of electricity, Energorynok, is being liquidated. In turn, electricity must be sold in accordance with bilateral agreements between producers and suppliers or consumers. Electricity sales exchanges are also being introduced: the day-ahead market, the intra-day market, and the balancing market.

SOE “Market Operator” will perform the function of a day-ahead market and intra-day market, SOE “Guaranteed Buyer” will participate in PSO mechanism and redeem electricity received from renewable sources at a “green” tariff.

On June 30, the first day-ahead trading took place. According to the auction results, 150.895.1 MWh were sold to the United Energy Systems of Ukraine and 9.435.9 MWh within the “Burshtyn Island TPP”. It is reported by SOE “Market Operator”.  

The Vice Prime Minister Volodymyr Kistion said that the price of electricity for the population from July 1 will be unchanged – an average of 1.08 UAH per kW.

In turn, the presidential representative in the Cabinet of Ministers, Andriy Gerus, outlined the shortcomings of the launch of a new electricity market. He announced it on his Facebook page.

At auctions on bilateral contracts, coal-fired power plants raised their price by almost 50% compared to June (tariff – 1.44 UAH), it is 2.3%, he said.

“Absolutely inadequate result of the “reform”, when world prices of gas and coal fall in price and coal electricity soars in price by 50%”, he notes.

Gerus noted the problems in the intra-day market. So, on June 30, due to incorrect requests of some market participants, in particular those containing prices above the marginal ones, as well as failures of the marginal price verification module, an emergency situation arose in the XMtrade/PXS software platform in the intra-day market, and as a result “Market Operator” suspended trading at the intra-day market for an hour and for two on July 1, 2019.

“The President V. Zelensky submitted two draft laws to postpone such a launch of the market, but, unfortunately, the government and the parliament took the decision to introduce it from July 1. Now we are analyzing possible consequences and methods of rapid response”, he recalled.

Some users in the comments noted that market prices are limited and tariffs for the population have not changed.


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Tags: The Cabinet of Ministers, contracts, tariffs, NNEGC "Energoatom", legislation, electricity, feed-in tariff, electricity market, SOE Enerhorynok, Зеленский, Gerus, Market operator, Guaranteed buyer

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