📍Today, December 30, the European-Ukrainian Energy Agency together with RES leading associations sent a joint position letter to the Minister of Energy of Ukraine regarding the draft Law of Ukraine “On Making Amendments to the Law of Ukraine “On the Electricity Market” on the introduction of an interim administration in the event of threat of violation of security of electricity supply».

✔️This letter was also sent to the President of Ukraine, Prime Minister of Ukraine, Chairman of the Verkhovna Rada, Business Ombudsman of Ukraine, Acting Director of UkraineInvest, as well as sent to the international community, namely to the: EU Delegation to Ukraine, Energy Community Secretariat, Ambassadors of the G7.

Joint position letter: RES Associations Position Paper – December 30,2021

🔘In Association`s view, the proposed Draft Law contradicts the Constitution of Ukraine, international legal agreements involving Ukraine and national legislation on competition protection, as it could lead to manual state intervention in the market economy and strengthen market power of state energy companies by gaining state control over private energy companies and state interference in the operational activity of such private companies, which will also lead to undue competitive advantages for state-owned companies due to the activities of interim administrations and, respectively, could lead to the complete elimination of private market players and total market monopolization by the state. 

✔️Summing up the text of the position set out in the joint letter, the proposed Draft Law is also subject to coordination with the Antimonopoly Committee of Ukraine.

Thus, considering that the Draft Law:

➖contradicts the fundamental principles of Ukrainian and international law (in particular, the Association Agreement, the Energy Charter and the EU acquis),

➖violates the Agreement on Mutual Protection of Investments and threatens arbitration against the state of Ukraine,

➖deteriorates the investment climate and investment attractiveness of Ukraine,

➖breaks the independence of the Regulator,

➖introduces double jeopardy for the same offence,

➖contains corruption-causing factors,

➖distort and eliminate market competition and reverse all achievements of electricity market liberalization, etc..

❗️We believe that the Draft Law cannot be passed by the Verkhovna Rada.

✅ In our opinion, laws of this nature should not be adopted in a market economy state governed by the rule of law. Instead, it would be appropriate and effective to strengthen the powers of regulators (NEURC and the Antimonopoly Committee of Ukraine) and improve Ukraine’s energy and antitrust laws in line with the European Union law.