Dear network users!

In pursuance of the instructions of the Regulator, we inform you again that in pursuance of the laws of Ukraine “On the National Energy and Utilities Regulatory Commission”, “On the Electricity Market” and “On the Natural Gas Market” the Resolution of 04 October 2023 No. 1812 “On Approval of the Procedure for Registration of Wholesale Energy Market Participants” (hereinafter referred to as the Resolution) was adopted, which entered into force on 15 October 2023 by the National Commission for State Regulation in the Spheres of Energy and Utilities (hereinafter referred to as NEURC).

Point 5 of the Resolution establishes that from 01 February 2024, transactions with wholesale energy products may be carried out exclusively by persons who have registered as wholesale energy market participants in accordance with the Procedure for Registration of Participants in the Wholesale Energy Market approved by this Resolution.

As of 27 December 2023, according to the Register of Wholesale Energy Market Participants, 1,217 entities were registered in it, which is about a third of the number of natural gas and electricity market participants who, according to the reports submitted to the NEURC, carried out transactions with wholesale energy products.

The above, as well as the limited period until the ban on carrying out transactions with wholesale energy products without appropriate registration, causes concern of the NEURC regarding the timely completion of the process of registration of the wholesale energy market participants and the further proper functioning of this market.

We emphasize that in accordance with point 3 of the first part of Article 21 of the Law of Ukraine “On the National Energy and Utilities Regulatory Commission” (hereinafter – the Law), conducting transactions with wholesale energy products without registration as a wholesale energy market participant is an abuse on the wholesale energy market.

According to point 1.3. subsection 1 of the Procedure for Investigating Abuses in the Wholesale Energy Market (hereinafter referred to as the Procedure for Investigation) approved by the Resolution of the NEURC of 26 September 2023 No. 1756, the object of the investigation is market behaviour (actions), circumstances, factual data that indicate possible abuse in the wholesale energy market its participant/subject.

The subject of the investigation is a wholesale energy market participant, a person who carries out transactions with wholesale energy products without registration as a wholesale energy market participant, in respect of which a decision has been made to initiate an investigation.

Thus, the NEURC will take the measures provided for by the applicable law to identify, stop and bring to justice persons who will carry out transaction with wholesale energy products without registration as a wholesale energy market participant.

In particular, the laws “On the Electricity Market” and “On the Natural Gas Market” provide for the application of sanctions by the NEURC for committing offenses on the markets of electricity and natural gas. This includes the imposition of fines, the amount of which will be determined in accordance with the Procedure (methodology) for determining the amount of fines imposed by the National Energy and Utilities Regulatory Commission, approved by the Resolution of the NEURC of 29 September 2023 No. 1800.