New electricity export rules a boon for Zakhidenergo

This week President Yushchenko signed amendments to the law “On Electric Energy”, which grants access to export grids via open tenders, breaking the monopoly of state company Ukrinterenrgo. The tender rules are to be outlined by the Ministry of Fuel and Energy within the next four months. Alexander Paraschiy: Monopolization of export markets made export volumes dependent on contracts with Ukrinterenergo. As Ukrinterenergo was not always flexible with its international partners, this led to halts in electricity exports to Poland in late 2007-early 2008, and to Hungary and Poland in 2009, idling the EU-oriented capacities of Zakhidenergo (ZAEN). We expect liberalization to increase export avenues and secure stable demand for Zakhidnergo’s electricity in the future.