European Commission criticizes Ukraine energy policy

The European Commission has criticized the Ukrainian government for its failure to implement legislation creating a transparent state energy regulator, the epravda.com.ua news site reported on March 17, citing a letter it obtained that was signed by European Commission Vice President Maroš Šefčovič on March 13. The Commission criticized “controversies” in the state regulator’s methodology for establishing coal prices and access fees to electricity. It also criticized the regulator for ignoring EU expert advice. The letter called upon the Ukrainian president to fulfill the law creating the new regulator and appoint two members to the selection commission.

Alexander Paraschiy: The lack of consistency in Ukraine’s electricity sector changes, which benefit electricity companies at the expense of consumers, has become apparent to Ukraine’s Western partners. In the worst case, the expressed concerns, if not addressed soon, may cause a delay in EU’s disbursement of a EUR 600 mln loan tranche, which was already approved by the European Commission on March 16.