Yesterday, December 13, 2021, the leading RES associations appealed to the Minister of Energy of Ukraine on the Draft Law “On Amendments to the Law of Ukraine” On Electricity Market “on the introduction of a temporary administration in case of threat of security of electricity supply”, that was published on the Ministry of Energy website on December 1, 2021.

The letter: Асоціації з ВДЕ_щодо тимчасових адміністрацій

The explanatory note to the Draft Law states that the purpose is to determine an effective mechanism to ensure the possibility of introducing a temporary administration to business entities operating in the energy sector in case of threat of violation of security of electricity supply and / or violation of the licensing requirements of economic activity by the entities.

Industry associations have concluded that the Draft Law will have a negative impact on the RES sector, arguing that Draft Law proposes:

1. to provide the Ministry of Energy with uncharacteristic functions – to influence the participants of the electricity market by introducing temporary administrations in case of violation of licensing conditions by the market participant;
2. to consolidate the mechanism of blocking the work of market participants, as temporary administrations will be introduced on all assets of enterprises, including on the generated electricity, so the introduction of administrations will actually lead to the impossibility of implementing agreements on the purchase and sale of electricity;
3. the actual introduction of a mechanism for the transfer of electricity facilities from private to state ownership without any compensation to producers or investors, which contradicts the principles of building a competitive electricity market.

In the letter, industry associations are asking to exclude RES producers from the provisions and mechanisms of the introduction of a temporary administration, that is proposed in the Draft Law.

Moreover, the measures proposed in the Draft Law do not comply with the provisions of Directive 2009/27 / EU, which in case of the adoption of the Draft Law may lead to a violation of Ukraine’s international obligations.