The USAID Energy Security Project (ESP) welcomes the completion of the adoption by the National Energy and Utilities Regulatory Commission (NEURC) of the priority group of regulatory acts aimed at implementing the European Regulation on Wholesale Energy Market Integrity and Transparency (REMIT).
The “Procedure for Registration of Wholesale Energy Market Participants” (Decision of October 4), which was finally approved by the National Regulator this week, together with the “Procedure for Investigation of Abuse in Wholesale Energy Market” (Decision of September 26) approved last week and the “Procedure (Methodology) for Identifying Amount of Fines Imposed by the NEURC” (Decision of September 28), are part of the priority package of regulatory acts provided for by the Law of Ukraine No. 3141-IX “On Introduction of Amendments to Some Laws of Ukraine on Prevention of Abuse in Wholesale Energy Markets” and the relevant Roadmap, and aimed at introducing the provisions of the EU Regulation 1227/2011 on Wholesale Energy Market Integrity and Transparency (commonly used abbreviation in English – REMIT) in Ukraine.
The proper, rapid, and as full as possible transposition and implementation of the European REMIT Regulation in Ukraine is critically important for the transition to the European model of liberalized (competitive) energy markets, which started several years ago but has not yet been fully completed, given Ukraine’s steady and confident willingness to fully integrate into the European Economic Area as soon as possible. The introduction of REMIT provisions in Ukraine will enable fast and effective regulation of wholesale energy markets, in particular, in terms of ensuring an appropriate level of transparency, timely detection, and prevention of abuses, including bringing violators to appropriate proportional liability for abuses, deterring potential violators from committing abuses in the future, and ultimately protecting the interests of both bona fide market participants and end consumers.
The newly approved “Procedure for Registration of Wholesale Energy Market Participants” identifies, in particular:
- the procedure for registration of wholesale energy market participants;
- the list of information required for registration;
- the format of the public part of the register of wholesale energy market participants to be published on the NEURC’s official website;
- the procedure for maintaining the Register of Wholesale Energy Market Participants by the NEURC;
- the procedure for exclusion from the register of wholesale energy market participants.
According to the Procedure, the registration of wholesale energy market participants will start on October 15, 2023. At the same time, NEURC has developed a respective schedule for submission of the registration form for those NEURC licensees who have to register as wholesale energy market participants. Taking into account the requirements and restrictions established by Law No. 3141-IX, starting from February 1, 2024, transactions in wholesale energy products may be carried out exclusively by persons duly registered as wholesale energy market participants.
Both during the development and open discussion of all the above-mentioned priority regulatory acts aimed at implementing Law of Ukraine No. 3141-IX, including the “Procedure for Registration of Wholesale Energy Market Participants,” USAID ESP experts provided relevant methodological clarifications, proposals for the composition or wording of certain provisions and relevant forms, practical recommendations for applying the principles and approaches generally accepted among European regulators in the current practice of REMIT implementation, taking into account the specifics of Ukraine’s effective legislation. NEURC took into account a significant part of these proposals and recommendations in the finalized versions of the regulatory acts.
At the same time, there is still much work to be done to further improve the regulatory acts already approved by NEURC, taking into account the comments and suggestions made during the open discussion, as well as the draft regulatory acts that NEURC still plans to consider and approve in fulfillment of the provisions of Law of Ukraine No. 3141-IX and the relevant Roadmap, as well as to introduce further amendments to the primary legislation that proved to be critically needed during the thorough analysis of Law of Ukraine No. 3141-IX and in the process of development and open discussion of the NEURC regulatory acts. USAID ESP is prepared to continue to provide professional support to NEURC, both in improving primary and secondary legislation, especially in view of the expected adoption of significant amendments to the European REMIT Regulation (the so-called REMIT 2), and in building the National Regulator’s relevant capacity to properly transpose and implement the European REMIT.
Information on the approved regulatory acts can be found on the NEURC website by following the links:
Procedure for Registration of Wholesale Energy Market Participants
Procedure (Methodology) for Identifying Amount of Fines Imposed by the NEURC
Procedure for Investigation of Abuse in Wholesale Energy Market