DIRECTIONS OF ELECTRICITY MARKET REFORMATION

Abstract

The article analyzes the current state of reforming of the electricity market of Ukraine, the basis of which is the new electricity market introduced on July 1, 2019. The purpose of the article is to reveal the main factors and trends that affect the reform of the electricity market of Ukraine at the present stage and substantiate proposals for solving the problems of this industry. Ensuring of the development of competition became the key element of the market reform. In addition, Ukraine pledged to the European Union to reform the energy market, that became the reason for the allocation of five hundred million euros of financial assistance. The developed new market has established the following rules. Thus the control of state enterprise “Energymarket” over the production and sale of electricity was eliminated. Instead of one monopolist, two new entities entered the market. The first provided the activities and organization of contracts for the purchase and sale of electricity on the market according to the principle of "day ahead", or on the intraday market that is called market operator. The second one is involved into the purchase of "green" energy from the manufacturer, namely solar and wind, and is called SE "guaranteed buyer". Regional energy supply companies were reorganized into operators of electricity distribution system. On the basis of the existing regional power companies, new enterprises for electricity supply were created, which led to an increase in the number of players on the market after its reformation. At the same time, a wholesale market was created, the segments of which included bilateral contracts, exchange of contracts for physical supply, exchange of financial contracts, as well as the balancing market and the market of additional services. However, it is established that in order to improve the situation with energy sector, the Verkhovna Rada needs to resolve the differences between the Law of Ukraine “On Joint Stock Companies” and the Law of Ukraine “On Management of State-Owned Objects”. Attention should be paid to building of the institutional capacity of State Enterprise Ukrenergo. All this requires from the Verkhovna Rada to adopt such laws that would create optimal conditions for the activities of joint stock companies, call off double taxation, improve the stock market and the capital market. Reformation of the energy sector requires improving of the independence and efficiency of the regulator in this sector. Thus the issue appeared about whether the regulator is able to issue a certificate of NPC Ukrenergo as a body with special responsibilities. And this is a crucial condition for the integration of the Ukrainian energy system into ENTSO-E. That is why the Cabinet of Ministers of Ukraine must create an independent regulator that meets the criteria of the Energy Community.The Ukrainian authorities need to find sources to pay the debt in the electricity market, which will greatly simplify the procedure for its output.