The new electricity market need to enter as soon as possible – USAID

Новый рынок электроэнергии нужно вводить как можно скорее - USAID

The United States Agency for international development (USAID)believe that the new electricity market in Ukraine should be introduced in a timely manner

This position was voiced at the workshop, representatives of the energy industry “the Introduction of a new electricity market. Challenges and solutions”, dedicated to the launch of the market from 1 July 2019, transfers “observer”.

The event was attended by representatives of the regulator (NKREKU) and energy companies. The majority of participants agreed that the new liberalised market necessary for Ukraine. Krassimir Kanev, Senior economist for energy, USAID, assessing the degree of market preparation for the launch, said: “We do not believe that the market from 1 July may not work! Of market failure – is impossible.”

The market will strengthen competition in the Ukrainian energy sector. This was also discussed by the participants. “The statement that there is no competition — not true. The competition is now.” – said Krassimir Kaniv.

“The market is segmented. And in each segment, there is competition. And when the import begins, the competition will be even more significant. Today, Ukrainian traders should gain experience in the market. When together with the integration to Europe, will come the European traders, the Ukrainian will be able to work and compete,” he stressed.

Kanev also said that in the future the price of electricity will fall. And the reason for the decline in prices is just competition. Regarding the timing of market introduction USAID representative stressed that the market must enter as soon as possible. “Anyone who says that the market should be postponed — are deeply mistaken. The market you need to enter as soon as possible”. – the expert believes.

Recall, the new electricity market, which will operate in accordance with EU standards should be introduced on 1 July 2019, according to the Law of Ukraine “On electricity market”. The introduction of the market is a condition of the program of cooperation of Ukraine with the IMF, according to which our country will receive this year’s $ 2.5 billion loan, as well as providing EU macro-financial assistance in the amount of 500 million euros.

As reported, at the meeting of the Cabinet of Ministers of Ukraine on 5 June orders were issued by the required to run the new electricity market “About the procedure for imposing special obligations of the participants of the electricity market to ensure the public interest” and “On approval of the procedure of electronic auctions for the sale of electricity through bilateral agreements.”