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Business met with the Chairman of the VRU Committee on Energy, Housing and Utility Services

26/ 05/ 2021
  On May 25, the European Business Association met with Andriy Gerus, the Chairman of the Parliamentary Committee on Energy, Housing and Utility Services. During the meeting, Mr. Gerus answered questions from the business about the current situation with the key draft laws for the energy market. The business was interested in the Committees plans to submit draft law №2553 for consideration in the second reading, which provides for the introduction of gas metering in kWh energy units. Thus, Mr. Gerus noted that a technical error had been identified in the text of the draft law regarding certain coefficients for gas injection/ extraction from underground gas storage facilities. Therefore, the Verkhovna Rada can consider this draft law only after the error is corrected and the latest version of the text is revised - which will take a certain amount of time. Meanwhile, the Committee understands the importance of Ukraines prompt transition to a European gas metering system and has therefore proposed an alternative solution. A new gas metering system can be introduced through amendments to draft law № 4578-1. However, it has not been finally decided in which way the issue will be resolved, but the Committee will insist on the quick adoption of the necessary changes. It was also noted that incentive rent rates for gas exploration from new wells will remain unchanged until the end of 2022. At the same time, according to Mr. Gerus, incentives should be introduced not only for gas but also for other hydrocarbons (oil and gas condensate) in order to increase their level of production. Regarding the settlement of the debt situation on the natural gas market, businesses were informed that there is already a working version of the draft law. It is expected that after its professional discussion (including by EBA representatives), the final draft of the Law will be submitted to the Verkhovna Rada for voting in the near future. Mr. Gerus also drew the participants attention to the importance of holding green auctions in 2021 to assess the effectiveness of such a mechanism. According to Mr. Gerus, in this way, the competitive mechanism of green auctions may later be extended to other auctions, including for new generating capacity. At the request of participants of the meeting, Mr. Gerus shared information about the date of consideration of draft law №3800. It should be noted that the business community does not have an agreed position on this draft law. This document provides for the introduction of special distribution accounts, which will solve the problem of the accumulation of debts of GDN operators. According to Mr. Gerus, this draft law will be considered during the second session week. In the context of stimulating the energy storage market, Mr. Gerus proposes to introduce incentives for the installation of energy storage facilities, as well as preferential tariffs for dispatching, transmission, and distribution of electricity. Thus, discussions will continue on draft laws №№ 2582, 5436, 5436-1, and 5436-2 to find an optimal model for the development in this direction. Also, Mr. Gerus reported on the current status of the adoption of draft laws №№ 2388, 2390, 5139, which will help solve the problem of the debt of SE Energorynok. Separately, business representatives were informed about the inclusion of draft law №5009 in the agenda of the next parliamentary session on Tuesday, June 1, 2021. Mr. Gerus hopes that the draft law on simplification of grid connection will be put for voting in the first reading soon. The European Business Association thanks Andriy Gerus for his professional discussion of initiatives that are crucial for the energy sector. For its part, the community reaffirms its readiness to cooperate and engage in the development of effective solutions aimed at ensuring stability in the energy market and its further development.   Be the first to learn about the latest EBA news with our Telegram-channel – EBAUkraine.

On May 25, the European Business Association met with Andriy Gerus, the Chairman of the Parliamentary Committee on Energy, Housing and Utility Services.

During the meeting, Mr. Gerus answered questions from the business about the current situation with the key draft laws for the energy market.

The business was interested in the Committee’s plans to submit draft law №2553 for consideration in the second reading, which provides for the introduction of gas metering in kWh energy units. Thus, Mr. Gerus noted that a technical error had been identified in the text of the draft law regarding certain coefficients for gas injection/ extraction from underground gas storage facilities. Therefore, the Verkhovna Rada can consider this draft law only after the error is corrected and the latest version of the text is revised – which will take a certain amount of time. Meanwhile, the Committee understands the importance of Ukraine’s prompt transition to a European gas metering system and has therefore proposed an alternative solution. A new gas metering system can be introduced through amendments to draft law № 4578-1. However, it has not been finally decided in which way the issue will be resolved, but the Committee will insist on the quick adoption of the necessary changes.

It was also noted that incentive rent rates for gas exploration from new wells will remain unchanged until the end of 2022. At the same time, according to Mr. Gerus, incentives should be introduced not only for gas but also for other hydrocarbons (oil and gas condensate) in order to increase their level of production.

Regarding the settlement of the debt situation on the natural gas market, businesses were informed that there is already a working version of the draft law. It is expected that after its professional discussion (including by EBA representatives), the final draft of the Law will be submitted to the Verkhovna Rada for voting in the near future.

Mr. Gerus also drew the participants’ attention to the importance of holding “green” auctions in 2021 to assess the effectiveness of such a mechanism. According to Mr. Gerus, in this way, the competitive mechanism of “green” auctions may later be extended to other auctions, including for new generating capacity.

At the request of participants of the meeting, Mr. Gerus shared information about the date of consideration of draft law №3800. It should be noted that the business community does not have an agreed position on this draft law. This document provides for the introduction of special distribution accounts, which will solve the problem of the accumulation of debts of GDN operators. According to Mr. Gerus, this draft law will be considered during the second session week.

In the context of stimulating the energy storage market, Mr. Gerus proposes to introduce incentives for the installation of energy storage facilities, as well as preferential tariffs for dispatching, transmission, and distribution of electricity. Thus, discussions will continue on draft laws №№ 2582, 5436, 5436-1, and 5436-2 to find an optimal model for the development in this direction.

Also, Mr. Gerus reported on the current status of the adoption of draft laws №№ 2388, 2390, 5139, which will help solve the problem of the debt of SE “Energorynok”.

Separately, business representatives were informed about the inclusion of draft law №5009 in the agenda of the next parliamentary session on Tuesday, June 1, 2021. Mr. Gerus hopes that the draft law on simplification of grid connection will be put for voting in the first reading soon.

The European Business Association thanks Andriy Gerus for his professional discussion of initiatives that are crucial for the energy sector. For its part, the community reaffirms its readiness to cooperate and engage in the development of effective solutions aimed at ensuring stability in the energy market and its further development.

 

Be the first to learn about the latest EBA news with our Telegram-channel EBAUkraine.

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