11:55 20.12.2019

Rada passes bill brining activities of energy regulator in line with Constitution requirements

2 min read
Rada passes bill brining activities of energy regulator in line with Constitution requirements

 Ukraine's Verkhovna Rada has passed at second reading bill No. 2490-1 aimed at bringing the activities of the National Commission of Ukraine for Energy, Housing and Utilities Services Regulation (NCER) in line with the decision of the Constitutional Court dated June 13, 2019.

Bill, the authors of which are Andriy Gerus, Andriy Zhupanin and Oleh Seminsky from the Servant of the People parliamentary faction, was backed by 265 MPs on Thursday.

Gerus previously said that the text of the document was discussed with the Secretariat of the Energy Community and received an assessment that it does not contradict European rules.

According to the bill, the commission is a permanent central executive body with special status and is created by the Cabinet of Ministers. Currently, the regulator is an independent body.

The commission is a collegial body involved in regulating, monitoring and supervising the activities of business entities in the fields of energy and utilities on behalf of the state. Given the launch of the new wholesale electricity market in July 2019, the authors of the bill propose adding to the already defined powers of the commission the powers to regulate the organization of the purchase and sale of electricity on the day-ahead market and on the intraday market, to ensure the purchase of electricity at feed-in tariffs (FIT) and trading activities.

According to the bill, members and the head of the commission are appointed by government orders (in contrast to the current law, according to which the head and members of the commission are appointed by presidential decrees) following a tender. A tender commission with five members is created under the Cabinet of Ministers. The commission consists of three people on the nomination of the relevant parliamentary committee, one each on the nomination of the ministries responsible for energy, regional development and housing and utilities services.

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