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UKRAINE

National Energy and Utilities Regulatory Commission  (NEURC)

Key Statistics (2011)

 

Population

45,63 million  

GDP/Capita

USD 3575

Generation

Fossil fuel 45,8%

Nuclear: 48,2%

Hydro: 5,8%

Renewables: 0,2%

Electricity Market Size

176,592     TWh/year

Amount of electricity export                                                                                 6454,9 GW/h; the main trading partners are:ENTSO-E countries and Belorussia

 

Summary
  • Established in 1994, currently there are 432 staff members
  • Mr. Sergey Titenko was appointed as Chairman in March 2010. 
  • Six commissioners appointed by the Cabinet Ministers of Ukraine on Prime Minister of Ukraine present. Terms are for six years. Commissioners can be re-appointed for a second term not more than once. 
  • The NERC is responsible for:
    • Regulation of natural monopolies activities in the power sector, in the oil and gas complex and in the sphere of heat generation;
    • Electricity, heat, gas, oil and oil products consumers rights protection;
    • Issuance of licenses to entrepreneurial entities operating in the energy sector;
    • Ensures implementation of pricing policies in the power sector, in the oil and gas complex and in the sphere of heat generation;
    • Regulation of relations in the retail electricity market
  • The NERC is financed from the national budget.
Industry and Market Structure

Electricity Market Structure

  • Independent System Operator, it also high voltage transmission company (owns cross-border power lines);
  • 93 energy generators which sell generated electricity to the Wholesale Electricity Market of Ukraine.
  • 44 electricity distributing companies
  • 40 suppliers at regulated tariffs
  • 288 suppliers at non-regulated tariffs, 74 of them purchase electricity in the wholesale market
  • 527 500 - non residential consumers
  • 18 973 100 - electricity household consumers
  • State owned wholesale electricity market established in 1996
  • A single buyer model

 

Current Energy Issues
  • Privatization of the regional distribution companies and thermal power plants.
  • Problems with arrears for electricity accumulated during previous years.
  • Cross subsidies – the population is subsidized at the expense of other categories of consumers.
  • Transition from the “single buyer” market to bilateral contract market with balancing market.
  • Transition from existing approach of the electricity transmission tariff setting for electricity distributing companies on the basis of “costs-plus pricing” method to long-term incentive regulation on the basis of marginal incomes level setting taking into account compliance to service quality standards in electricity supply.
  • Introduction of monitoring system of service quality indicators in electricity supply.
  • Development and introduction of normative and technical codes (the Grid Codes, the Metering Code), regulating mutual relations between subjects of electric power industry in corresponding sphere.
  • Development of standard base of the auxiliary services market functioning and its introduction.
  • Participation in Energy Community Regulatory Board (ECRB) and its Working groups.
  • Reconstruction and modernization of the physically and morally obsolete equipment of thermal power stations.
Contact
19, Smolenskaya St, Kyiv, Ukraine 03680
Tel.: (380 44) 277 30 01, Fax: (380 44) 277 30 47
Internet: http://www.nerc.gov.ua/

Report on the Status of the NERC

  Laws

  Org. Chart of NERC

  Annual Report

  Grid Code

  • Code

  License

  Tariff Methodology