DTEK is ready for a new model of the electricity market to start from 1 July

DTEK is ready for a new model of the electricity market to start from 1 July

15.05.2019
DTEK

A new electricity market to be launched on 1 July 2019 is key to the development of the national economy. The readiness of the regulatory framework and infrastructure gives confidence that the market can be started within the time stipulated by law. DTEK outlined its position in a letter in response to a request of Oleksandr Dombrovsky, Chairman of the Verkhovna Rada Committee on Fuel and Energy Sector, Nuclear Policy and Nuclear Safety.

As stated in the letter, about 89% of the entire regulatory framework (39 documents) has been adopted, the rest (five documents) are in the final approval stage. The infrastructure required for the new market is more than 90% ready.

The following steps are necessary for the successful launch of the new electricity market:

  • Adopt a resolution of the Cabinet of Ministers regarding PSO (public service obligation) for renewable energy sources
  • Complete legal procedures to establish a market operator and guaranteed buyer
  • Make a decision to extend the existing format of fiscal electricity metering
  • Make a decision to introduce temporary measures for simplifying trade operations in the market, the so-called “safe mode”

DTEK’s letter includes expert calculations that are publicly available. They clearly show the economic effect from the launch of the new market:

  • About $43 billion of investment raised for the power industry of Ukraine
  • Creation of 100,000 skilled jobs 
  • Additional real GDP growth by 0.3% annually (around $5 billion)
  • Additional annual government revenues ($0.8-1.5 billion in taxes)
  • Additional incomes for Ukrainians amounting to around $18 billion due to economic growth and creation of new jobs