Ukrainian electricity market liberalization moves forward

The Cabinet of Ministers’ official newspaper Uryadoviy Kurier yesterday published the announcement of the registration of an energy exchange, in line with the new electricity market model. The energy exchange will be used for trading spot, day-ahead and futures electricity contracts under the new market model, which eliminates the current one-buyer system and allows for direct contracts between electricity producers and consumers with the remaining electricity traded on the exchange. Yegor Samusenko: We note that there is nothing to be traded on the energy exchange yet. Before that is possible, in order to move forward with electricity market reform, complex changes to the “Law on electricity” are required. After that, the National Electricity Regulation Commission must specify electricity contracts that can be traded. That said, we see creation of the electricity exchange as indicative that electricity reform will gain pace under the new government.