The import of electricity will increase competition in the new market – Kovalchuk

Импорт электроэнергии повысит конкуренцию в новом рынке, - Ковальчук

The import of electricity, which will be possible after the reform of the electricity industry from 1 July 2019, will increase competition in the market

This writes the expert on energy issues of the Ukrainian Institute of the future Adrian Prokop, reported Ukrainian news.

“There are different ways of preventing abuse of market participants (electricity — ed.). One of the most effective products. Today, the ability to import electricity is actually locked at the regulatory level. But with the launch market, it (the import of electricity — ed.) will be freely exercised,” writes A. Prokop in the article “Fear and loathing on the electricity market”.
This view supports the head of the NPC Ukrenergo Vsevolod Kovalchuk.

“Please note that from 1 July 2019 to our country will be possible (finally) import electrical energy”, — wrote V. Kovalchuk on his page in Facebook.

According to Kovalchuk, the import of electricity may be an additional factor increasing competition in the electricity market.

In turn, the Antimonopoly Committee of Ukraine has confirmed that it has all the mechanisms and authority to ensure that the market was not anti-competitive abuses.

“We have all the tools needed to stop violations of competition law — like recommendation engine, and mechanism of fines. We understand what potentially the company may be defendants from the point of view of the AMC. We welcome first step in the liberalization of the market,” said Tatiana Kuleshova, Director of the AMC research and investigation of markets of energy and utilities.

From 1 July in the second phase of the energy reform will earn the wholesale electricity market, including the market of bilateral contracts, the day-ahead market and vnutricletocny market, balancing market and ancillary services market. The Antimonopoly Committee of Ukraine intends to track the process of proposing electricity contract terms and specifics of pricing in these markets. This will prevent dominance of certain companies in the market and the establishment of economically unreasonable prices.

Reform of the electricity market is organized in the framework of Ukraine’s implementation of the Third energy package of the EU. The aim of the reform is the creation of competitive wholesale and retail electricity markets on the European model.

The timely introduction of the second phase of the reform depends on Ukraine to receive macrofinancial assistance from the EU (500 million euros) and a loan from the World Bank (500 million euros).