Transmission system operators of Ukraine, Poland, Slovakia, Hungary, and Moldova have preliminarily approved the distribution of functions for holding auctions for cross-border trade with electricity, the press service of national energy company Ukrenergo.

The press service said that the auction office of Ukrenergo will conduct all types of auctions for cross-border trade between Ukraine and Poland, Slovakia, and Moldova, as well as annual and monthly auctions for cross-border trade with Romania and daily auctions – with Hungary. The annual and monthly auctions to trade with Hungary will be conducted by MAVIR, and daily auctions to trade with Romania – Transelectrica.

The company said that at a meeting held in Vienna early April chaired by the Energy Community Secretariat the action plan for the introduction of common auctions for cross-border trade with the transmission system operators of the above-mentioned countries of ENTSO-E and their regulators.

So, by the end of 2020, it is necessary to develop and agree between the transmission system operators and regulators of Ukraine, Poland, Slovakia, Hungary and Romania, the distribution rules and the agreement on the common division of cross-border trade, which should provide for the procedure and formats for the exchange of information. The introduction of auctions is scheduled for 2020-2021.

"Common auctions for cross border directions between Ukraine and neighboring ENTSO-E zone operators greatly simplify the export and import of electricity to and from Europe. In particular, they ensure unhindered access of all market players to trading of capacity with the exchanged energy, minimize the number of procedures required to ensure cross border-trade, and significantly accelerate their passage. These measures create conditions for maximum competition between producers and importers of electricity and the formation of a fair market price for it," the company said.