September 2018Kinstellar Energy Digest: Ukraine
GAS STORAGE: Ukraine revises tariffs for natural gas storage
On 1 August 2018, new tariffs came into effect for the underground storage of natural gas in Ukraine. Ukraine’s National Commission for the Regulation of the Energy and Public Utilities Sectors (the “Regulator”) adopted a corresponding resolution (No. 480) on 19 June 2018, which was published with delay.
According to the above resolution, the new tariffs for underground gas storage services are calculated on a daily basis at the following rates:
The above tariffs are quoted VAT exclusive; their euro equivalent is calculated based on the official UAH/EUR rate as of 27 August 2018.
NEW ENERGY MARKET: Regulator gives nod to draft regulations
On 23 August 2018, the Regulator preliminary approved a number of drafts of secondary legislation that are required for functioning of the new electricity market in Ukraine.
The proposed new rules, which are currently pending public discussion, include a long-awaited procedure for the purchase of electrical energy offered at a feed-in (“green”) tariff and the procedure for the reimbursement of costs relating to the construction of linear connections to the power grid (if such connections are included in the regulatory base of assets). Other draft regulations include:
In addition to the proposed changes above, the Regulator also adopted in August the “Methodology for Determining Available Cross-Border Capacity (Cross-Border Electrical Networks of Ukraine)”.
Summing up the current progress in the implementation of a liberalised energy market in Ukraine, the Regulator has reported its 90% readiness in terms of the adoption of the required regulatory acts.
For further information please contact Olena Kuchynska, Partner, at , or Viktoriia Pysmenna, Associate, at .