12:23 24.10.2016

EU to help Ukraine protect household consumers on energy market

2 min read
EU to help Ukraine protect household consumers on energy market

The European Union (EU) is ready to pay attention to the protection of rights of households as part of the provision of technical assistance to Ukraine in reforming the energy market, Secretary of Competitive Policy and Energy Markets at the Delegation of the European Union to Ukraine Jose Manuel Hernandez has said.

At the discussion devoted to the day of protection of heat and power consumers in Kyiv last week he said EU countries have enough experience in the sphere and the effective legislative base.

Hernandez said that in 2015 the EU passed reform programs describing what will be done for consumers.

He pointed out the right to select suppliers in the EU, while Ukraine does not have it, as well as the right to connect power grids (the regulator sets the rules for connecting to power grids), the right to have a clear and transparent agreement with suppliers, the right to use alternative sources and protection of a vulnerable group of consumers.

Ombudsman for protecting vulnerable consumers Martinez Jürgen shared Germany's experience. He said that in Germany households can appeal to the ombudsman with complaints, while suppliers are obliged to take part in discussion of the complaints.

Jürgen said that with 40 million power consumption agreements with households, the ombudsman office received around 14,000 complaints in 2013, some 10,000 in 2014, up to 5,000 in 2015 and in 2016 it would be around 6,500.

Head of the regulatory policy department of Ukraine's largest private energy holding DTEK Yulia Nosulko said that the electricity market reform in Ukraine will create absolutely new conditions for power consumers when suppliers engage in real competition and fight for consumers.

"In the current administrative model to manage energy in Ukraine there is no market in its real sense. Consumers do not have choice. On the new market regional power supply companies will be divided into power transportation and supply companies," the expert said.

Thus, monopoly (transportation) will be divided from a competitive market (supply).

She said that the Third Energy Package that will be introduced in Ukraine thanks to the power market reform pays special attention to consumers' rights protection, mainly, households and small businesses that have smaller income and an opportunity to challenge actions of service providers in court.

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