On June 10, 2023, the Verkhovna Rada of Ukraine adopted the so-called Law on REMIT.
Ukraine, as a party to the Energy Community, following the provisions of the Law of Ukraine “On the Ratification of the Protocol on the Accession of Ukraine to the Energy Community” and the decision of the Energy Community Ministerial Council No. 2018/01/MC-EnC as of November 29, 2019, undertook the commitment to implement the Regulation (EU) No. 1227/2011 as of October 25, 2011, on integrity and transparency of the wholesale energy market in its adapted version. This regulation is called REMIT.
Draft Law No. 5322 dated April 1, 2021, was developed for its implementation.
According to it:
- a number of new terms are introduced, in particular: “wholesale energy market”, “wholesale energy product”, “manipulation on the wholesale energy market”, “insider information” and their definitions;
- registration of participants of the wholesale energy market (electricity and natural gas market) is introduced following the procedure approved by the National Commission for State Regulation of Energy and Public Utilities;
- a ban on manipulations on wholesale energy markets or attempted manipulations is established;
- restrictions on dealing with insider information (insider trading) are established;
- the responsibility of wholesale energy market participants and their officials for market manipulation, improper use of insider information – sanctions in the form of fines are established;
The goal of the project is to ensure transparency and integrity of wholesale energy markets: electricity and natural gas markets, prevent abuse by participants in wholesale energy markets, establish liability for participants for manipulation in energy markets, as well as for trading based on insider information.
It should also be mentioned that the Draft Law amends the Law of Ukraine “On Urban Development Activities“, which extends the validity period of technical conditions for electric power facilities that produce electricity from alternative energy sources until December 31, 2024.
It involves electric power facilities that produce electric energy from alternative energy sources (except for electric power facilities or their construction phases (start-up complexes) that produce electric energy from solar energy), and business entities that intend to produce such and concluded an agreement for the purchase and sale of electricity at the “green” tariff until December 31, 2019.
On June 15, 2023, the Draft Law was sent to the President of Ukraine for signing. At the same time, to fully function, the development and adoption of a number of regulatory acts for the practical implementation of the introduced mechanisms and principles are expected.