Electricity market structure and participants

Since 2019, any legal entity can become member of the Electricity market and participate in the sale and purchase of electricity.

IKNET offers services of acquiring the membership in the electricity market (producer, supplier, consumer etc.) and provides the complete follow-up of market member activity.

Participants of the Market:

Electricity producer – any business entity with a license for electricity generation.

Electricity supplier – any business entity with a license for electricity supply; supplies electricity to consumers under a supply contract.

Trader – any business entity with a license for electricity trading; carries out the purchase of electricity exclusively for the purpose of its resale, except for sale under a contract of electricity supply to the consumer.

Transmission system operator (TSO) – entity responsible for operation, dispatching, maintenance, development of the transmission system and interstate power transmission lines. NEC Ukrenergo as the holder of electricity transmission license is the TSO.

Distribution system operator (DSO) – entity responsible for the safe, reliable and efficient operation, maintenance and development of the distribution grids. Every region of Ukraine has its own DSO called Oblenergo.

Market operator – newly created State Enterprise "Marked operator" that ensures the functioning of the day-ahead and intraday market as well as the organization of purchase and sale of electricity in these markets.

Guaranteed buyer – newly created State Enterprise "Guaranteed buyer" that buys electricity from producers who have a green tariff.

Consumer – purchases electricity for own consumption.

Since July 2019 the new Electricity market entered into force in accordance with the Law of Ukraine "On the electricity market".

The electric energy market provides the following system of relations between market participants when buying and selling electric energy and/or auxiliary services, transmission and distribution, as well as the supply of electric energy to consumers:

Bilateral agreements – Purchase and sale of electricity between two market participants outside the organized segments of the market, except for the contract of electricity supply to the consumer. Pricing on the basis of bilateral agreements between the parties.

The market "for the day ahead" – Purchase and sale of electricity on the day following the day of trading auctions. The price is determined for each billing period based on the principle of marginal pricing based on the balance of aggregate demand/supply.

Intraday market – Purchase and sale of electricity after the completion of trading on the market "for the day ahead" and during the day of physical supply of electricity. The price is determined on the basis of the pricing principle "at the declared (proposed) price".

Balancing market – Provision of real-time balancing of production and import and consumption and exports, regulation of systemic constraints in the Interconnected Power System of Ukraine, as well as financial regulation of electricity unbalances. The price is set according to the market rules.

Additional services market – Acquisition of additional services by an Operator from additional services providers. The price is set according to the market rules.

Electricity Market Segments

IKNET provides the complete follow-up of market member activity.