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Arseniy Yatsenyuk about an energy sector reform: de-monopolization of the market, independence of NEURC, simplifying of the procedure of connecting to power grids
25.02.2016 | 17:04

Key elements of the new energy market in Ukraine should become the improvement of economic efficiency, competition, de-monopolization of the market and the introduction of rules and procedures aligned with the Third Energy Package, announced Prime Minister of Ukraine Arseniy Yatsenyuk during the meeting on the reform of the energy sector on Thursday, February 25.

Arseniy Yatsenyuk stressed that the Government had initiated the process of reforms in the gas sector two years before. He accentuated among the results of upgrading the sector was the fact that for the first time in the history of independence Ukraine has been living without supplies from Gazprom for 90 days now.

"It is the 90th day today we haven’t bought a single cubic meter of gas from Russian Gazprom", said the Head of Government.

The next stage of reforms, he said, is the introduction of a new electricity market in Ukraine: "Its core elements are viewed the improvement of economic efficiency, competition, de-monopolization of the market and the introduction of rules and procedures aligned with the Third Energy Package".

Arseniy Yatsenyuk noted that the Government had drafted a law and sent to the Western partners to be analysed.

In a letter signed by the World Bank, the Energy Community, the delegation of the European Union, the European Bank for Reconstruction and Development, the USAID, our West partners have offered eleven points to amend the bill.

"We need to clearly define whatever model of the electricity market we are building in Ukraine. This model should fully comply with the Third Energy Package of the European Union. And the proposals expressed in the letters of five of our Western partners, should be mandatorily included in the draft of the law".

Apart from the adoption of the new law on electricity market, stressed the Head of Government, a law on the National Energy and Utilities Regulatory Commission (NEURC): "The National Commission must be a fully independent regulatory authority in the electricity market. Nowadays this body is appointed by the President. According to the draft law submitted to the Parliament, the members and the head of the National Energy and Utilities Regulatory Commission shall be selected through an independent contest".

"This law should be adopted", he urged.

Arseniy Yatsenyuk also stressed the need to endorse the law on the procedure of connection to electric networks, as now the monopoly in this market "entails the high cost of connection and terrible bureaucracy and prevents businesses to develop and citizens of the country to freely choose an electricity supplier and to have quick access to power supplies".

Today Ukraine demonstrates poor performance in the WB getting electricity ranking, stressed the Head of Government. He highlighted that the adoption of the law called to simplify such procedures would enable Ukraine to improve by at least 20 positions in the Doing Business ranking.

"Therefore, our objectives are to destroy the monopoly, to create a cost-effective model of the electricity market and to become part of the European energy market", stressed the Head of Government, adding this requires support of the Parliament for these three bills.

"I believe that there will be also support of the market, as this is the way to leverage investment and it will significantly influence the cost of electricity facilities, which Ukraine plans to privatize in the current and following years. The more liberal the market appears, the higher price of electric power facilities will be and the cheaper service will cost for both the entrepreneurs and the citizens. And that is our goal as the Government," urged Arseniy Yatsenyuk.

The meeting gathered members of the Government of Ukraine, representatives of the World Bank, the EBRD, the European Commission, the Energy Community Secretariat and the USAID, the electric power companies, NGOs and experts on energy.


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