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Energy Community ‘welcomes’ Ukraine’s energy market reforms

Ukraine’s recent adoption of the “On Amendments to Certain Laws of Ukraine as to Prevention of Abuse in the Wholesale Energy Markets” (REMIT Law) on 10 May has been “warmly” welcomed by the international organisation, Energy Community Secretariat (13 June).

This legislation incorporates the Energy Community framework regulation (EU) on wholesale energy market integrity and transparency (REMIT Regulation) into Ukraine’s legal framework. As a result, it enhances the harmonisation of Ukraine’s energy markets with EU standards, Energy Community said.

“The adoption of the REMIT Law marks an important step on Ukraine’s path towards further electricity and gas market integration with EU neighbours. It will promote trust in the transparent functioning of the Ukrainian energy market and create the necessary level playing field between Ukrainian and EU market participants, especially in view of market coupling in electricity,” said Artur Lorkowski, Director of the Energy Community Secretariat.

Since 2020, the Secretariat has provided technical and legal assistance to Ukraine in implementing the REMIT Regulation, including specialised workshops, regulatory knowledge transfer seminars and thorough legislative review. The organisation remains “committed” to supporting Ukrainian stakeholders in the practical implementation of the REMIT Law and its associated regulations.

Under the REMIT Law, Ukraine’s National Energy and Utilities Regulatory Commission (NEURC) will make decisions within its authority regarding penalties for abuses in the wholesale electricity and gas markets, in consultation with the Energy Community Secretariat for the first two years.

The recent emergency synchronisation of Ukraine and Moldova’s control blocks with Continental Europe further underscores the importance of the REMIT Law, the Secretariat said. It will facilitate increased commercial exchanges, joint cross-border transmission capacity allocation, and eventual electricity market coupling between Ukraine and the EU. These developments align with the market integration goals outlined in the package of new electricity Energy Community laws adopted in December 2022 and the Roadmap for Further Market Integration devised by the High-Level Working Group on Energy Market Reforms between the EU and Ukraine.

The REMIT Law also introduces amendments related to cross-border capacity allocation, which will streamline commercial power exchanges between Ukraine and its EU neighbours by providing the necessary level playing field, the Secretariat said.

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