The Law of Ukraine "On the Electricity Market" has recently entered into force. Are we fully aware of what awaits us with its adoption? In accordance with the provisions of this Law, the operation of the New Electricity Market begins from July 1, 2019.
The participants of the New Market are: electricity producers, electricity supplier, market operator, trader, consumer, guaranteed buyer (currently SE “Energorynok”), transmission system operator (currently NEC "Ukrenergo") and distribution system operator (currently transmission companies).
Components of the New Electricity Market:
• balancing market;
• market of auxiliary services;
• market "for a day in advance";
• the interaday market
and
• bilateral agreement.
The main functions provided by the New Electricity Market
The balancing market – provides a real-time balancing of volumes of production / import and consumption / export of electricity, regulation of system constraints in the UPS of Ukraine, as well as financial regulation of electricity unbalances.
The market of auxiliary services - provides the acquisition by the Operator of transferring system an ancillary services from ancillary services providers.
The market "for a day in advance" - purchase and sale of electricity for the next of trading day.
The intraday market - purchase and sale of electricity after the completion of trading on the market " for a day in advance " and during the day of physical supply of electricity.
Bilateral agreements - purchase and sale of electricity between two market participants outside the organized market segments, except the contract for electricity supply to the consumer. New scheme is shown on the picture below
In particular, this Law will determine the main legal, economic and organizational principles of the functioning of the New Electricity Market.
It should be noted that this Law states that the Law of Ukraine "On the principles of functioning of the Ukrainian electricity market" and partly the Law of Ukraine "On Electricity" (except Articles 9, 15, 151 and 17, which have separate periods of validity) are become invalid. However, all regulatory acts adopted for fulfilling the Law "On Electricity", in particular the Rules for the connection of electrical facilities to electrical networks, will be effective until new regulatory acts will enter into force, that must be adopted within 9 months from the date of entry into force of the Law "On the Electricity Market".
Since entry into force of the New Market will take place only in 2019, there is still time to realize and take appropriate measures to implement it.
At the same time there are provisions of the Law, which are not consisted with the reality and require immediate clarification, they are:
From 2017 it was foreseeing the introduction of the third level of standard connection, according to the Rules for the connection of electrical facilities to electrical networks. In particular, the standard connection of facilities with capacity from 50 to 160 kW inclusive, and this level of capacity connecting is absent in the Law "On the Electricity Market" at all.
Considering this, it is not clear what is the current procedure for connecting consumers with installed capacity up to 160 kW inclusive?
The latest information on the topic –
Important information for customers on connection to electricity networks are on the NERCCS site here
On the topic of the event review: UPDATING OF EUROPEAN LEGISLATION. In February 2017, the EU Council began to discussions the draft of amendments to Regularly scheduled basis No. 714/2009, the Directive On United Energy Market No. 2009/72 / EC and the Regularly scheduled basis for the creation of ACER # 713/2009. The latest version of the amendment is in COM (2016) 861 final / 2 2016/0379 (COD) from February 23, 2017. The changes relate to the main provisions of the Fourth Energy Package. The proposals are aimed at: establishing a framework for the effective achievement of the objectives of the European Union on energy and, in particular, the climate and energy base for 20-30 years, including market signals that will be delivered to enhance flexibility, decarbonisation and innovation; The establishment of the basic principles of well-functioning, integrated electricity markets that allow non-discriminatory access to markets for all suppliers of resources and consumers of electricity, empowerment and enhancement of consumers possibilities, will allow regulation of demand and the efficiency of energy use. Discussion of the proposed changes is still ongoing.