Energy News Digest | August 2025

Implementation of European law in the energy sector

On July 22, the Verkhovna Rada of Ukraine adopted draft law No. 12087-d “On Amendments to Certain Laws of Ukraine Regarding the Implementation of European Law Provisions on Energy Market Integration, Improving Security of Supply, and Competitiveness in the Energy Sector.” The draft law provides for the integration of the electricity markets of Ukraine and the EU, improves the rules for the day-ahead market and the intraday market, introduces new terminology (aggregation, flexibility, community energy associations), and ensures Ukraine’s compliance with its obligations under the Association Agreement and the Energy Community Treaty.

Amendments to the Code of Commercial Electricity Accounting

On July 22, 2025, the NEURC approved changes to the Code of Commercial Electricity Accounting and the Temporary Procedure for determining electricity purchase volumes for the transition period. These changes are aimed at improving the mechanisms of accounting and settlements between market participants, in particular, increasing the accuracy and transparency of determining actual electricity volumes. This is important for the stability of financial settlements, especially in the context of a growing share of renewable sources, when forecasting generation is difficult. The updated rules also bring the Ukrainian market closer to European standards of commercial accounting and contribute to further integration into the EU energy space.

Amendments to the Methodology for determining fees for connection to networks

On August 5, the NEURC adopted Resolution No. 1158 on amendments to the Methodology (procedure) for determining fees for connection to the transmission and distribution system. The document stipulates that all purchases for the construction and reconstruction of connection facilities shall be made on a competitive basis, and customers who independently develop and approve project documentation shall be entitled to have part of the previously paid fee credited to the final connection cost. A mechanism is provided for adjusting the cost of the contract in case of deviation of actual costs from the project costs: the operator must return the difference to the customer in case of savings, as well as return the excess funds if the final fee exceeded the costs. In addition, the amount paid for capacity reservation is now credited towards the total connection fee. The changes are intended to ensure greater transparency, competition, and fairness in settlements between customers and network operators.

Amendments to the Rules of the Retail Electricity Market

On August 5, 2025, the NEURC approved draft amendments to the Rules of the Retail Electricity Market aimed at ensuring payment discipline among non-residential consumers. According to the draft, a court ruling to open proceedings in a case is no longer grounds for suspending the procedure for terminating electricity supply to debtors. At the same time, guarantees of uninterrupted supply remain in place for protected consumers and critical infrastructure facilities (medical institutions, water utilities, defense and security facilities). The changes are intended to prevent abuse and ensure the financial stability of the market.

Long-term allocation of cross-border interconnection capacity

On July 29, the NEURC approved rules for the long-term allocation of transmission capacity between Ukraine and Slovakia, Hungary, and Romania. From now on, electricity export and import operations will be carried out through a joint monthly mechanism on the Joint Allocation Office (JAO) platform. This decision expands Ukraine’s access to the European electricity market, increases the transparency and competitiveness of trade, and strengthens energy security and integration into the EU energy space.