NKREKP ready to launch new electricity market in Ukraine from July 1, EBRD have different opinion

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Open source

National Commission for State Regulation of Energy and Public Utilities Sector (NKREKP) does not see any obstacles to launch the new electricity market from July 1.

This was announced by the deputy head of the NKREKP energy market department, Volodymyr Butovsky, UNIAN informs.

“The commission does not see any obstacles to launch of a full-scale market from July 1. To this end, all major legal acts of legislation were adopted,” he said.

At the same time, Butovsky noted that the commission continues to work on secondary legislation for the full launch of the market from July 1.

At the same time, Olga Eremina, Senior Banker of the Electricity Department of the European Bank for Reconstruction and Development (EBRD) in Ukraine, said that the conditions for creating a competitive relationship between electricity producers in the new market, which Ukraine should earn from July 1, have not yet been established.

“Will Ukraine achieve the goal of competition? Let’s be realistic – the oligopolistic industry [oligopolistic industries are characterized by the presence of several firms, each of which has a significant market share – ed.]. We know the main players in the market. We know that Energoatom sells electricity at a regulated tariff of 56.6 kopecks, and the heat tariff is more than twice as high. The heat tariff will shape the market price. There are no immediate conditions for competition yet,” the Economic Truth newspaper quotes Eremina as saying.

As The Journalist reported, Ukrenergo predict rise in electricity tariffs from July 1, 2019.

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