Energy news August 2019

Today, on August 29, 2019, at 10.00, the solemn meeting of the Verkhovna Rada of Ukraine on the occasion of taking the oath by the newly elected Ukrainian parliamentarians started at the session hall of the Verkhovna Rada of Ukraine, and the opening of the first session of the Verkhovna Rada of Ukraine of the Ninth convocation - at 13.00.

Source: http://bit.ly/347vPxb

Results of the sitting of the newly elected Verkhovna Rada of Ukraine on 29.08.2019:

The Chairman of The Verkhovna Rada of Ukraine - Dmitry Razumkov

Chairman of the Verkhovna Rada Committee on Energy and Utility Services - Andriy Gerus.

Prime Minister of Ukraine - Oleksiy Honcharuk.

Minister of Energy and Environment of Ukraine - Oleksiy Orzhel.

The new composition of the Government is available at: https://www.kmu.gov.ua/en/team.

The first day of the work of the 1st session of the Verkhovna Rada of the IX convocation appeared to be very fruitful: the Government and the Committees of the Verkhovna Rada were formed, about 80 draft laws were registered, in particular, the Draft Law on Amendments to Article 106 of the Constitution of Ukraine, to establish the right of the President of Ukraine to form independent regulatory bodies, №1014 from 29.08.2019. The draft law, which will resolve the situation with the NEURC, submitted by the President of Ukraine and identified as urgent.

The Resolution on preliminary approval of the draft law on Amendments to Article 80 of the Constitution of Ukraine on Removal of the Immunity of People's Deputies of Ukraine №1095 from 29.08.2019 was voted.

Guaranteed Buyer

The NERCEP Resolution №1732 of August 23, 2019 approved the cost of providing services to increase the share of electricity generation from alternative sources of energy provided by SE “Guaranteed Buyer” in July 2019 by UAH 1, 55 billion. (excluding VAT).

As the representative of the Guaranteed Buyer informed, the total cost of electricity purchased under the “green” tariff in July amounted to UAH 2.501 billion, the income from the sale of electricity purchased from SE “NAEK “Energoatom” and PJSC “Ukrhydroenergo” under the PSO mechanism, at UAH 855 million and expenses for covering imbalances - UAH 96.8 million.

After approving the cost of the service, the Guaranteed buyer paid UAH 3 billion to RES producers for electricity produced in July 2019. Thus, the state-owned enterprise 100% fulfilled its obligations before the renewed generation for the first month of the new market.

As of August 27, 430 companies are listed in the Green Tariff Producer Register. The total amount of alternative energy produced in July is about 506 thousand MWh.

Sources: http://www.nerc.gov.ua/?id=43791

http://www.gpee.com.ua/main/news?id=194

The Guaranteed Buyer has prepared a draft Instruction on providing forecast data to electricity producers at a “green” tariff. Comments and suggestions can be sent to This email address is being protected from spambots. You need JavaScript enabled to view it. by September 1, 2019.

Source: http://www.gpee.com.ua/main/news?id=187

DAM and IDM

During the 20 days of August, the volume of purchase and sale of electricity at the DAM amounted to 2 492 213,0 MWh (10% less than in July), of which 138 427,0 MWh in Burshtyn TPP Island .

The volume of VDR in the 20 days of August was 68 907.50 MWh (20% less than in July).

For the 20 days of August 2019, the weighted average price for DAM is 1 673,94 UAH/MWh, which is 2,66% higher than for the 20 days of July. The increase in the weighted average prices for DAM is due to the higher price level of bids for electricity sales and the shortage of bids for electricity sales.

The average weighted price in IDM for the 20 days of August 2019 is 1820.14 UAH / MWh, which is less by 0.36% compared to the same period in July 2019.

Source:  https://www.oree.com.ua/index.php/main/get_by_id/506

PSO

On August 14th, the Ukrainian Government upgraded the PSO mechanism for electricity market players: Energoatom and Ukrhydroenergo will participate in PSO for 90% and 35% of the electricity they generate.

Volume of sales to compensate losses of electricity that occur during transmission to Distribution System and Supply System Operators was reduced to 80% and now selling by Guaranteed Buyer.

Also latest amendments has permission to  Guaranteed Buyer to direct the difference between revenue and the expenses incurred in the performance of its duties, to provide coverage of their own economically reasonable costs of fulfilling special purchasing responsibilities electricity at a "green" tariff and at an auction price.

The official text has not yet been published.

Read more: http://bit.ly/2L4yb8k

Ukrenergo

JSC NEC Ukrenergo has submitted documents to NEURC for certification as an independent transmission system operator.

Ukrenergo certification is a requirement of the Law of Ukraine "On the Electricity Market" and of the EU Directive 2009/72, the implementation of which is part of Ukraine's international obligations and is a prerequisite for obtaining a license to carry out electricity transmission activities in the new market.

Required certification requirements:

• corporatization

• unbanding (transferring the company to another governing body to avoid conflicts of interest)

• ownership of the transmission network.

At present, the company has fully fulfilled the first two conditions: Ukrenergo has become a private joint-stock company and issued shares, and the company has moved from the Ministry of energy and coal industry of Ukraine to the Ministry of Finance.

With regard to network ownership, there is a legal conflict in existing law. According to paragraph 3 of Article 32 of the V Law of Ukraine "On the Electricity Market" the operator of the transmission system must be exclusively the owner of the transmission system. At the same time, in accordance with Article 4, Paragraph 2 of the Law of Ukraine “On Privatization of State and Communal Property”, property that ensures the integrity of Ukraine's power grid and control room, as well as trunk and interstate electric networks, is not subject to privatization.

The networks are currently owned by the state and transferred to a business under an economic management right.

Ukrenergo filed a lawsuit with the Kyiv Commercial Court to recover UAH 1.67 billion from the Energorynok SE for the services of the company for centralized control and transmission of electricity, which were provided in accordance with the contract dated September 4, 2000 №136/01 to 1 July 2019.

The amount of the debt as confirmed by the acts of reconciliation of payments. No payments were made to pay off the debt at the time the claim was filed.

Read more: http://bit.ly/2L41dFp

http://bit.ly/328vatu

Ukrenergo’s tariff:

 On August 22, the Administrative Court of Appeal refused to satisfy the appeals of NEC Ukrenergo, NEURC, the Guaranteed Buyer on the cancellation of the provision suspending the NECCR's Resolutions No. 954 and No. 955 of June 7, 2019, setting tariffs for Ukrenergo dispatching. So, current situation is the same as for July:

The Court unblocked the Ukrenergo’s tariffs for electricity transmission services and services of dispatching (operational and technological) management, which were set by the NEURC Resolutions No. 954 and No. 955 of June 7, 2019, which were subsequently suspended.

At Ukrenergo's request, the court changed the measures of securing the claim so that the tariffs remain suspended only for the claimant's side (ferroalloy plant), for whom the old tariff (57.4 UAH/MWh) approved by the NEURC Resolution No. 1905 of 12.12.2018 continues. For the rest of the market participants, in July 2019, the tariffs set by the above-mentioned regulations of the NEURC (347.14 UAH/MWh and 8.9 UAH/MWh respectively) are in force.

On August 15, at the meeting of NEURC, the draft resolution “On Amendments to the NEURC Resolution No. 1411 as of July 12, 2019” was approved. It stipulates that, as of October 1st, 2019, the tariff for the electricity transmission services of Ukrenergo will be halved, to the level of 159.3 UAH/mWh (without VAT).

The NEURC approved for public discussions the new draft tariff for electricity transmission services of NPC Ukrenergo, which proposes to reduce it by 49%.  It is envisaged that the new tariff will apply from October 1, 2019, and amount to 159.3 UAH/MWh. Since August 1, the transmission tariff is 312.14 UAH/MWh (NEURC Resolution of 12.07.2019 No. 1411).

 Public discussions on the new draft tariff will take place 10 days after its publication on the Regulator’s website.

The main factor for reducing the transmission tariff was the recalculation of the projected volume of electricity transmission. The Regulator has increased this volume by almost 24% to 71.2 million MWh, adjusting it based on the producers’ forecast sale volumes. Increased volumes of transmission allow Ukrenergo to significantly reduce the proportion of network maintenance costs in the cost of transmission per MWh.

Sources: http://bit.ly/2Pjepu4

http://www.nerc.gov.ua/?id=43526

Free business joomla templates