BRIEF INSIGHT

5 heat generating companies (control batch of shares of four of them belong to the state, in 2011 the privatisation is planned); 4 nuclear power stations (100% of shares belongs to the state);

8 hydroelectric power plants (100% of shares belongs to the state);

National Energy Regulation Commission (NERC) performs the state regulation of the subjects of natural monopolies in the power industry and oil and gas complex, provides the building of price and tariffs policy in these spheres.

regional energy distribution companies oblenergo (most of them private companies); thermoelectric plants most of them at the huge cities are separate companies, that completely belong to the state; State Company Ukrenergo (holder of main energy networks and traffic controller of the united energy system of country);
27 527

500 - non residential consumers and 18 973 100 - electricity household consumers

Wholesale electricity market (WEM) State owned wholesale electricity market established in 1996, the wholesale buyer and wholesale seller of the electric power. The function of wholesale market of electric power is performed by the State Company Energorynok, that accumulates the electric energy from the generating companies and distributes it among oblenergo for the weight average wholesale price;

Despite of growing energy demands the country imports electricity to Russia, Moldova, Belarus, Poland, Slovakia, Hungary and Romania. 288 suppliers at non-regulated tariffs, 74 of them purchase electricity in the wholesale market.

 Energy

markets in Ukraine have inherited the production capacities and technologies from Soviet times, but since Ukraines independence they underwent a number of substantial changes in organisational and ownership structure. Ukraine depends on three types of generation facilities i.e. thermal power plants (steam turbine and diesel types), hydroelectric plants (hydroelectric proper and hydroelectric accumulating plants) and nuclear power plants.

 In

the mid 90s power sector of Ukraine underwent a substantial reform. Ukraine became the first country among FSU countries, which introduced competitive electricity market. In May 1994 the president of Ukraine issued a decree requiring the liberalization of the power sector and the development of a competitive national wholesale electricity market (WEM).

 Restructuring

took place in 1995-96, and was supported by the extensive technical assistance from multilateral and bilateral donors. In 2001 Integrated Energy System of Ukraine was connected to Russian Energy Systems by establishing of Slobozhanskiy Energoostriv

Primary energy Nuclear power plants (NPP) Thermal power generating companies (CC TPP) Hydroelectric power plants (HPP) (except small) Heat and power (CHP) Hydroelectric power plants (HPP) (small) Wind power (WEC) Solar Power Biomass Other Total

The share in the amounts of Share in the cost of electricity electricity 46,97% 39.73% 5.85% 7.02% 0.10% 0.14% 0.18% 0.01% 0.00% 100.00% 23.16% 54.12% 2.94% 17.01% 0.19% 0.40% 2.15% 0.03% 0.00% 100.00%

 Privatization

of the regional distribution companies and thermal power plants. Problems with arrears for electricity accumulated during previous years. Cross subsidies the population is subsidized at the expense of other categories of consumers. Transition from the single buyer market to bilateral contract market with balancing market.

 Transition

from existing approach of the electricity transmission tariff setting for electricity distributing companies on the basis of costs-plus pricing method to long-term incentive regulation on the basis of marginal incomes level setting taking into account compliance to service quality standards in electricity supply. Introduction of monitoring system of service quality indicators in electricity supply. Development and introduction of normative and technical codes (the Grid Codes, the Metering Code), regulating mutual relations between subjects of electric power industry in corresponding sphere.

 Development

of standard base of the auxiliary services market functioning and its introduction. Participation in Energy Community Regulatory Board (ECRB) and its Working groups. Reconstruction and modernization of the physically and morally obsolete equipment of thermal power stations.

(Wh) 187/150,8 Peak Load (GW) 28,3 (24/11/2011 8 pm) 31,86(02/02/2012 6 pm) Export (TWh) 6,45 Installed capacity 53,3GW Production 194,1 Wh
Consumption
- 2012 FIGURES

ELECTRICITY IMPORT AND EXPORT

 National

Electricity Regulatory Commission was established in 1995.