Even in times of war: Ukraine is praised by the Energy Community for its energy reforms

Despite the war, Ukraine managed to implement some reforms in the electricity and natural gas markets. This is evidenced by the Report on the Implementation of European Energy Commitments among the Community Countries for 2023, UNN reports.

Details 

The Report, in particular, assesses Ukraine's implementation of the Energy Community acquis for the period from November 2022 to October 2023 in 5 main areas (clusters).

In general, Ukraine has one of the highest implementation rates in key areas. Ukraine's progress in the clusters was assessed as follows:

- Energy Markets and Integration - at 69%;

- Decarbonization of the Energy Sector - at 44%;

- Ensuring Energy Security - at 61%;

- Environmental Protection - at 52%;

- Regulatory Activities - at 76%.

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In terms of assessing the performance of the four main regulatory authorities (energy regulator, as well as relevant authorities in the antimonopoly sphere, state support and official statistics), the NEURC was rated at a high level - 82%.

The Secretariat also recorded the main changes that took place in the current year, in particular:

• progress in the regulation of wholesale energy markets: the long-awaited legislative definition and the start of direct implementation of the REMIT Regulation on the integrity and transparency of wholesale energy markets;
• implementation of the Clean Energy Package for all Europeans (CEP): legislative consolidation and development of by-laws on guarantees of the origin of electricity from RES, market premium and Net-billing mechanisms, as well as demand management measures (aggregation in the retail electricity market);
• continuation of price reforms in the electricity market, in particular, a reasonable price increase for final household consumers in 2023 and revision of wholesale price caps in the electricity market, in accordance with the approved methodology;
• successful certification of the gas storage operator

Appendix

Ukraine and Serbia were singled out among all the Community countries, which have already prepared and submitted to the Secretariat the draft legislative changes necessary to implement the new Electricity Integration Package.

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Thus, despite martial law, Ukraine has managed to achieve tangible results in reforming the electricity and natural gas markets.

Maintaining this pace next year will facilitate progress in the further implementation of European rules as a prerequisite for Ukraine's accession to the EU and will have a positive impact on Ukrainian consumers and energy market participants.

To recap

Naftogaz Group is developing a decarbonization strategyto meet EU standards for future Ukrainian gas exports, focusing on responsible production, storage and transportation.