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Energy

Policy Progress: National Commission for State Regulation of Energy and Utilities Repeatedly Postponed the Implementation of the Neutrality Fee

Policy Progress: National Commission for State Regulation of Energy and Utilities Repeatedly Postponed the Implementation of the Neutrality Fee

The American Chamber of Commerce in Ukraine (the Chamber) welcomes the repeated decision of the National Commission for State Regulation of Energy and Utilities (NEURC) to postpone the implementation of the neutrality fee.

The Chamber has consistently supported the initiatives to create an effective market-based mechanism for transparent and open cooperation between gas market participants and the Gas Transmission System Operator of Ukraine (GTSOU), needed in the framework of balancing requirements.

However, the arrangement of such a market-based mechanism was expressly questioned due to the lack of progress in the implementation of the Law of Ukraine #1021-IX dated December 2, 2020, providing GTSOU ability to undertake balancing actions through purchasing short-term standardized products on a trading platform, the insufficient transparency of the neutrality fee components as well as disparity of the gas volumes used in its calculation.

While activities to enhance the efficient balancing regime and the development of the short-term wholesale market are underway, the American Chamber of Commerce in Ukraine welcomes the adoption of NEURC's decision to postpone the neutrality fee implementation.