NEURC has tightened the rules on the electricity market: what will change for participants

The National Commission for State Regulation of Energy and Utilities (NKREKP) has approved amendments to the Electricity Market Rules. The innovations are aimed at strengthening financial discipline, increasing the transparency of market operations, and improving interaction between market participants and the transmission system operator.

The regulator adopted the relevant decision on June 9.

As reported by the NKREKP, one of the reasons for updating the rules was the recommendations of the Antimonopoly Committee of Ukraine on preventing possible violations of the legislation on the protection of economic competition.

Protection of market participants
One of the key innovations was the strengthening of the protection of participants in balancing and aggregated groups in cases of problems with the balance responsible party (BRP).

The updated rules define clear mechanisms when the transmission system operator is obliged to renew imbalance settlement agreements for market participants.

The NEURC emphasizes that this will reduce risks for companies that have transferred responsibility for their imbalances to another party, and will also ensure the continuous participation of such participants in the market even in the event of financial or organizational problems in the SRB.

More transparency in the market
The changes also concern the improvement of information interaction between the transmission system operator platform and organizers of electronic auctions for the sale of electricity under bilateral contracts.

The new mechanism should ensure a more effective exchange of information on concluded contracts, registration of electricity volumes and control over the implementation of contracts.

The regulator notes that this will contribute to increasing the transparency of operations in the electricity market and minimize possible abuses.

Update of financial guarantees
A separate block of changes concerns financial guarantees and settlements on the balancing market.

The document clarifies the mechanisms for ensuring the fulfillment of financial obligations by market participants, as well as individual provisions of standard contracts between market participants and the transmission system operator.

The National Electricity Regulatory Commission emphasizes that the updated rules should make the electricity market more stable, predictable, and protected for both participants and consumers.