Ukraine in the Energy Community: Independent assessment
1. Ukraine in the Energy Community: independent assessment
Implementation of the Energy Community acquis
as the way to enhance Ukrainian and European energy security
Vienna, 24.11.2014
2. This document has been produced with the financial assistance of the European Union, in the framework of the project "Improving implementation of Ukraine’s commitments within the Energy Community through enhancing impact of civil society", implemented by the DiXi Group think tank jointly with the Resource & Analysis Center "Society and Environment".
The contents of this document are the sole responsibility of NGO "DiXi Group" and can under no circumstances be regarded as reflecting the position of the European Union.
4. Report findings
Clear commitment (Association Agreement, Third Energy Package by 2015)
Political will is not sufficient (low competition, less transparency)
Framework laws to be improved, specific actions plans developed
Implementation in priority areas should include internal and external control from the stakeholders
Support of those responsible (mid level officials)
5. Energy security policy
pressure of gas and coal supply crises (Crisis Energy Office)
short-time solutions (early warning mechanism, "winter package", imports from other sources)
substitution creates stress for energy systems, forces restrictions in gas and electricity trade
long-term solutions (diversification, demand management) on early stages and require investment
administrative "management" vs market instruments
6. Gas market
recommendations of the EU stress tests ignored
instead – temporary return to administrative-based monopoly (CoM Resolutions No. 596 and 599)
unbundling of Naftogaz and distribution companies to be formal
actual liberalization seen as post-crisis target
entry/exit system for TSO, gas exchange - positive steps
possible options for restart - new Gas Law, single wholesale price
7. Other acquis
Oil/petroleum stocks: mid 2015 as deadline for framework law; smaller fuel stocks (20-days consumption) could be an option, subject to appropriate funding mechanism
Statistics: prices/tariffs reporting in process (new forms), as depends on data transfer from regulatory authority; no public reports on the ESAP available
Competition: Law on State Aid to take effect in 2017, the AMC capacity should be increased; gas supply companies to be inspected
8. Thank you for attention!
Roman Nitsovych
romnits@dixigroup.org
enref.org