The Government has allowed partial release of electricity from the PSO

Yesterday, May 20, the meeting of the Cabinet of Ministers of Ukraine adopted amendments to the current Regulations on assignment of special duties on the natural gas market entities and the Procedure for conducting electronic auctions on bilateral contracts for electricity sale. Amendments in the indicated normative documents will be available for review after the publication of government decisions in the near future.

Thus, the changes provide reduction of the share of sale of electric power of Energoatom from 85% to 80% within the framework of the PSO and providing for the Guaranteed buyer permission to buy and sell electric power under bilateral contracts. Accordingly, at special sessions, Energoatom will be able to sell up to 5% of the generation at market prices, but not below UAH 567 per MWh. At such auctions, the electricity will be sold in large lots and only to final users. The Guaranteed buyer also has the right to sell electricity, except for volumes according to the PSO, under bilateral contracts concluded as a result of electronic auctions.

Such changes allow market participants to have access to the nuclear generation resource on market terms. Accordingly, large consumers will be able to purchase electricity directly from the producer, i.e. the Energoatom or the Guaranteed buyer on the bidding results.

"We welcome the partial removal of restrictions on the sale of nuclear power generation resources in favour of electronic free price auctions. Today, the companies affected by these changes have initiated auctions at UEEX on a permanent basis. Also, a large number of market participants have already purchased electricity from the Energoatom since April this year. Ukrainian Energy Exchange already has experience in conducting auctions in the form of special sessions, accumulated technical support and qualified personnel to support the auctions." - Oleksandr Kovalenko, UEEX CEO mentioned.