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Europe and Eurasia: Ukraine

Ukraine Energy Regulatory Partnership: Navigating Ukraine’s Way to the European Energy Market

Staff of the New York State Public Service Commission and the Ukraine National Energy and Utilities Regulatory Commission visiting a system operator, Kiev, June 2010.

The Energy Sector

As a member of the European Union Energy Community, Ukraine is working to take its regulatory frameworks and energy sector to a higher standard to more fully integrate with Europe. Ukrainian officials are introducing more intense competition as well as higher technical standards and regulations, while at the same time creating a better environment for investment. More broadly, Ukraine is on a path to build its capacity to regulate its electricity and natural gas sectors more effectively.

 

Our Work

Supported by the United States Agency for International Development (USAID), NARUC’s Ukraine Energy Regulatory Partnership is designed to help enhance the ability of the National Energy and Utilities Regulatory Commission (NEURC) to regulate effectively the electricity and natural gas sectors in Ukraine by drawing on international practices and relevant U.S. experience in market restructuring to encourage greater competition. The partnership specifically supports the regulator in developing the regulatory framework for further market liberalization, the ancillary service market and consumer engagement.

NARUC’s experts and consultants also provide recommendations, approaches and other forms of regulatory counsel by peer reviewing NEURC’s regulatory instruments and decisions, infusing the dialogue with practical expertise, problem-solving elements, exchange of judgments and varied perspectives so that NEURC is better positioned to design stronger regulatory processes and enforce credible and vetted decisions.

 

Selected Results

Regulatory Reform
The Parliament of Ukraine adopted the Law on the National Energy and Utilities Regulatory Commission in September 2016. In drafting the Law, NEURC used comprehensive information about the authority and functions of US State commissions and the US Federal Energy Regulatory Commission (FERC).

Natural Gas
On April 9, 2015, the Ukrainian Parliament adopted the Law on Natural Gas Market, paving the way for reforming and de-monopolizing the Ukrainian gas sector in line with the Third Energy Package. The Law came into force on October 1, 2015. NEURC actively collaborated with the Ministry of Energy and Coal Industry in drafting the Law, bringing in knowledge and experiences shared through NARUC activities.

NARUC also assisted NEURC in the development of its draft Gas Storage Code. This work included establishing general criteria to determine when to allow for a market–based contract versus a regulated tariff regime for natural gas storage. NEURC adopted the Gas Storage Code and the related criteria on September 30, 2015.
 

 

At A Glance

Project Dates: 2010-Present

Primary Partners:

National Energy and Utilities Regulatory Commission

Contact Us About This Project

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