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UKRAINE
National Electricity Regulatory Commission of Ukraine (NERC)



country map

Key Statistics (2010)

Population

45,78 million  

GDP/Capita

USD 2546

Generation

Fossil fuel 43,4%
Nuclear: 49,3%
Hydro: 7,2%
Renewables: 0,14%

Electricity Market Size

170,955    TWh/year

Amount of electricity export  4217  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
  • 1 high voltage transmission company (owns cross-border power lines)
  • 70 energy generators which sell generated electricity to the Wholesale Electricity Market of Ukraine.
  • 44 electricity distributing companies
  • 42 suppliers at regulated tariffs
  • 279 suppliers at non-regulated tariffs, out of them 65 purchase electricity in the wholesale market
  • 19 131 276 personnel accounts – 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.
  • Tariffs for household consumers cover  about 30% of long-run marginal costs.
  • Cross subsidies – the population is subsidized at the expense of the industry, rail road transport, budget and other commercial 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 on purpose for implementation of Aquis Communautaire on energy, competition and environment and establishment of regional electricity market without internal borders.
  • 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