Refutation of information about non-transparency of auctions and non-compliance with EU exchange standarts

Ukrainian Energy Exchange denies information on the non-transparency of electricity auctions and on non-compliance with EU exchange standards

Given that in recent days there have been statements in the media about the Ukrainian Energy Exchange (UEEX) conducting auctions for the sale of electricity by state producers, the Ukrainian Energy Exchange publishes its official statement in the download application.

At the same time, we note the following.

The Ukrainian Energy Exchange (UEEX) conducts auctions for the sale of electricity by state producers exclusively in accordance with the Procedure approved by the Resolution of the Cabinet of Ministers of June 5, 2019 № 499. The right to hold such auctions was obtained by UEEX on the basis of a transparent competitive selection conducted by the Ministry of Energy according to the criteria approved by the Cabinet of Ministers. The Auction Committee, chaired by the Minister of Energy or his Deputy, has all the powers to control and change the terms and conditions of auctions. Thus, auctions for the sale of electricity are fully controlled by the state and the Ministry of Energy, in particular.

During the auctions, UEEX implemented a number of technical solutions aimed at improving bidding mechanisms and meeting the needs of market participants for the efficient operation of the electricity market. There were no complaints or grievances against the Ukrainian Energy Exchange regarding violations of the Auction Procedure or Regulations. Instead, 174 market participants thanked UEEX and provided recommendations.

The Ukrainian Energy Exchange has been selected by the Energy Community Secretariat as an exchange in Ukraine capable of implementing EU requirements for competitive exchange trading. Accordingly, a Memorandum of Understanding was signed between the Energy Community Secretariat, the EBRD, the Ministry of Energy and the UEEX to ensure the development of the UEEX in line with European standards. The Advisory Board of UEEX includes representatives of the signatories of the Memorandumand is actively working on the full transition of UEEX to the standards of EU exchanges, clearing, appropriate organizational structure and best technologies. Relevant agreements have been concluded with leading European consultants and vendors, and the best experts from European energy exchanges are involved. UEEX cooperates with the world’s leading exchanges and clearing centers.

UEEX is a member of the Association of European Energy Exchanges Europex, which includes 29 energy exchanges and focuses on developing a European regulatory framework for wholesale trade in energy and renewable energy.

Ukraine has already created legislation in accordance with EU standards governing the activities of commodity exchanges. In accordance with the Law of Ukraine 738-IX of June 19, 2020, the activity of commodity exchanges is subject to licensing and strict requirements for the activity of exchanges are established by the NSSMC.

UEEX emphasizes its openness and readiness for dialogue with all authorities, readiness to work according to the best EU rules and practices, thanks European partners and its 1,200 participants for their trust, and declares its further intentions to establish a competitive and transparent energy market in Ukraine.