Electricity Market Reform

On 24 October 2013, Ukrainian Parliament adopted the Law of Ukraine "On Principles of Functioning of the Electricity Market of Ukraine" No. 663-IV (the "Law"), which became effective from 1 January 2014.

General Overview

According to experts of the Ministry of Energy and Coal Industry of Ukraine, the main purpose of the Law is to liberalize the country's wholesale electricity market and to create an effective competitive electricity market consistent with the basic requirements of EU legislation.

Previously, all wholesale trade in electricity was performed through the state enterprise "Energorynok", which operated as intermediary between the electricity producers and the suppliers selling electricity to end customers. Essentially, such production and supplying companies were the only players on the Ukrainian wholesale electricity market. As per the new Law, it would be possible for customers to become electricity market players and to freely choose their own