REUTERS
The move is aimed at streamlining the regulatory framework for the Ukrainian electricity market.
Ukraine's National Energy and Utilities Regulation Commission (NEURC) has canceled Resolution No.289 dated March 3, 2017, "On Approving the Procedure for the Formation of the Projected Wholesale Electricity Price," known as the "Rotterdam Plus" formula.
Read alsoCabinet approves Energy Strategy of Ukraine until 2035
The decision taken at an NEURC meeting on August 23 shall come into force with the launch of a new electricity market.
In addition, a total of 24 executive acts previously regulating the work of the Ukrainian energy industry are recognized as having lost force. The move is aimed at streamlining the regulatory framework for the Ukrainian electricity market and ensuring the implementation of the Law of Ukraine "On the Electric Energy Market" as planned.
A relevant bill adopted by Ukraine's parliament for the electric energy market provides for the introduction of a new competitive market model that includes a number of segments: the bilateral contracts market, the "day ahead" market, the intraday market, the balancing market, and the market of ancillary services.
The document implements the norms of the Third Energy Package of the European Union, including those relating to the dividing companies in the areas of electricity distribution and transmission.
As was earlier reported, the draft resolution on repealing the "Rotterdam Plus" formula was made public on the NEURC's website on August 17. The expert community supported the Commission's plans to introduce a new electricity market and recommended that this process be accelerated. The relevant debate was arranged by the Ukrainian Centre for Economic and Political Studies named after Oleksandr Razumkov on August 22 with the participation of representatives of Ukraine's government, the EU Delegation to Ukraine, the Polish Embassy in Ukraine, the national energy company Ukrenergo, the Ukrainian Energy Exchange, and independent experts, according to the Center's website.
Ukraine's National Energy and Utilities Regulation Commission carries out state regulation of natural monopolies in the electric power industry, heat supply, oil and gas complex, centralized water supply and drainage, processing and burial of domestic waste, as well as ensures the relevant price and tariff policy.