Opening of the new market started with the first auctions for electricity sales at the UEEX

Today, on June 27, the Ukrainian Energy Exchange held the first auctions for the sale of electricity under bilateral contracts to launch the new market model from July 1.

The first two auctions were held in the form of a special session in accordance with the Regulation on the assignment of special duties to ensure the public interest in the process of functioning of the electricity market. At the auction to ensure the availability of electricity for domestic consumers, SE NAEK Energoatom sold 4 144 824 MWh of base load electricity at a price of 566.70 UAH per MWh, excluding VAT, and PJSC Ukrhydroenergo sold 138 000 MWh of peak load electricity at a price of 673.76 UAH per MWh, excluding VAT. At the auction for the sale of electricity to compensate technological losses of electric energy for the transmission/distribution SE NAEK Energoatom" sold another 828 816 MWh of electricity at a marginal price of 566.70 UAH per MWh without VAT. Thus, at the first auctions of SE NAEK Energoatom, the main producer of electricity in Ukraine, sold almost 5 million MWh of base load electricity.

Chairman of the Exchange Committee of the Ukrainian Energy Exchange Oleksii Dubovskyi commented on the holding of the first auctions: "I think that this is really a landmark event for the electricity market. Today, 4 days before the first of July, the market was actually launched, as the segment of bilateral contracts opens the first day ahead of the market, intra-day and balancing market. Auctions were held in the form of a specialized session, and I can assess them as successful and state the fact of launching a new market model. Despite the fact that the accompanying regulatory support for the auctions was adopted a few weeks/days before the launch, the Ukrainian Energy Exchange quickly responded to external challenges and organized electronic auctions under the Law of Ukraine "On Electricity Market" at a high level. In a short period of time, we were able to mobilize all market participants, provided free training and registered them for participation in the auctions. An intensive training campaign was organized so that all participants could work independently and effectively in the electronic trading system. In particular, all the participants, who have special responsibilities to ensure public interest in the process of electricity market functioning, were involved in special sessions. I would also like to note that the cost of the exchange’s services for participation in the auction is 1 UAH for each auction certificate regardless of the volume of the transaction. The Ukrainian Energy Exchange has done a huge job and continues to register participants who are not subject to special obligations. I hope that such auctions will become basis for the creation of a competitive exchange market of bilateral contracts in Ukraine. The schedule of auctions has been approved by the Auction Committee and is published on our website, we invite all participants to conclude their bilateral contracts at the UEEX".

We shall remind that on June 21, in accordance with the order of the Ministry of Energy and Coal Industry of Ukraine №270, the Ukrainian Energy Exchange was appointed as the organizer of electronic auctions for the sale of electricity under bilateral contracts.