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Hi-Tech / Hardware

250 UAH to the account: What to expect from the law on electricity market

MComp 14.04.2017 at 10:36

News on the political and public arena in the world, Russia and other countries. Recent events in the country.

The Verkhovna Rada adopted the draft law on electricity market, which involves the introduction of new market model.

the Verkhovna Rada adopted the draft law on electricity market, which involves the introduction of new market model.

the Vote was preceded by a lively discussion in the session hall. Most MPs referred to the support of the Western partners law, called it a very important and urged to vote.

However, against the bill said the leader of "Batkivshchyna" Yulia Tymoshenko, remembering the history of the "forest-timber", and then equating the law to the "Rotterdam +" (according to which the tariffs for the population increased substantially).

According to her, the night the bill is "larded" corruption amendments, which do not have time to read nor the representatives of the European Union or other international structures. She played for clause-by-clause reading and voting of the law.

"Because here, in the amendments, not just corruption, where barter, the absolute selectivity, here is the definition in the manual mode, who does what. And nothing the European institutions to the trash. There's only Mr. Kononenko of BPP made so many changes, that in principle this law will only serve the corrupt entourage of the President", — said Tymoshenko. Kononenko noted that only made one change, which concerns access to the market of the electric power commissioners of the state banks instead of one Bank.

After a long discussion about the rules of voting, the Parliament voted separately for each edit, rejected by the Committee. They did not get enough votes. "The nth" revision to the speaker Andriy Parubiy began to approach MPs to vote for the law in the second reading and in General. The question of the transition to such a vote supported by the majority of MPs in the hall, and the law still was adopted by 277 votes of parliamentarians.

So what changes will cause the adopted law and how this will affect consumers and the electricity market as a whole?

Actually, about the market

the opinion of Andriy Gerus, former member of the national Commission, the Ukrainian electricity market is uncompetitive and technically isolated from the others. Theoretically, the market can get electricity from Russia and thus increase competition in the market, but it is almost impossible because of political barriers. On the other hand, the import of electricity from Europe is impossible for technical reasons, because of the desynchronization.

in addition, the Ukrainian market cannot be called competitive, since 95% fall under the control of two players. It is the state and DTEK Rinat Akhmetov:

1. Energoatom (state property) = 50-55% of production

2. Centrenergo (state property) = 8-10% of production

3. Ukrhydroenergo (state property) = 6-7% of production

4. DTEK = more than 25% of output.

"That is, state-owned companies (often managed from one office, where sits the winner of the election) = 70% output. AND DTEK = 25%. A total of two beneficiaries, control about 95% of electricity generation. Foreign companies there," explains Gerus.

According to him, the newly adopted law releases free floating energy producers.

I Should add that according to the authors of the newly adopted law, through its implementation, will be ensured competition in the market and improves the economic performance of activities of market participants and the energy industry as a whole.

the Bill also complements the list of participants of the market the new trader, which can be any entity implementing the purchase of electrical energy for the sole purpose of resale in addition to selling to the final consumer.

As explained by the Chairman of the Ukrainian Agency of investment and sustainable development, expert group energy sector Reform RPR Julia Usenko, thanks to the emergence of traders will increase competition. Requirements of the Third energy package of the EU provided to separate the activities of supply and transmission of electrical energy.

"Now the power companies are essentially in one person to carry both electricity transmission and delivery directly to the consumer. These functions will not be able to perform the same legal entity. We are waiting for the arrival of new suppliers of electricity who will be able to dilute those now on the market", — said the expert.

Rates

As noted Usenko, prices for the population to grow and now, and the adoption of a law does not mean that prices will immediately decrease.

"If not now, then at new market, for which the introduction will take some time, this also will not happen. Need time to establish a market and fair prices for consumers," — says the expert of RPR.

She also adds that the document provides for a transitional period for two years, which is necessary to ensure conditions for the work of the law. This, in particular, technical measures and software to run the markets provided by law (the new market model will consist of a market of bilateral contracts, the market "day ahead", vnutrikletochnogo, balancing, retail and ancillary services market — Ed.).

However, according to Gems, the price of electricity and final tariffs for the population will still grow in 2, and possibly 3 times.

"Is +150 UAH +250 UAH to the account per month. who is now on the market," he said.

However, according to experts, the liberalization of the market without increasing the price just could not be held.

"of Course, our current model is outdated and should be reformed. But any reform should lead to positive practical results. And, in my opinion, strengthening the competitiveness of the markets is at least equally important, who are now on the market," said Gerus.

thus, according to him, the price for electricity for small and medium businesses, public institutions and organizations will also rise, perhaps 1.5−2 times.

"But for the TOP 20 large enterprises-consumers of electricity, the price may not rise. And, perhaps, reduced. They will be of interest to sellers who are now on the market", — said Gerus.

logically, the higher the competition, the lower price and high quality. Ex-member of the national Commission gave an example:

"In Russia, where there are a dozen miners of the coal, its price at Rotterdam. In Poland at the level of Rotterdam. In Ukraine, where more than 80% in one hand, and, in my opinion, this monopoly allowed the state to float freely, the price of coal Rotterdam+".

However, according to Gems, the consequences of the law can be both positive and negative.

"the Competitive market could be built before the law (privatization, corporatization, splitting, opening of the market). But no one did. Someone will suddenly change the priorities and take up such a difficult task after the law? Let's see two years," he said.

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