THE UKRAINE ELECTRICITY MARKET: MANAGEMENT AND DEVELOPMENT TRENDS

Abstract

The new electricity market of Ukraine started working in 2019. It provided a new model for interaction between suppliers and consumers of electricity. At present, electricity is sold under bilateral agreements between producers and suppliers or consumers. The supply is segregated into a separate business, which meets European standards and creates conditions for fair competition. The purpose of the article is to investigate the features of the modern state of management and development of Ukraine’s electricity market and to substantiate proposals for their improvement. The article discusses the main issues concerning the management and development trends of the Ukrainian market for electric power. The entities of the electricity market and features of the functioning of the new energy market of Ukraine are identified. Also, considered are systems of relations between market participants in the realization of purchase and sale of electric energy and/or auxiliary services, transmission and distribution, as well as delivery of electric energy to consumers. Indeed, the introduction of a new electricity market model creates more opportunities for the development of all participants without exception. On the basis of the results of the study, the main accents of the electricity market of Ukraine are selected, which are considered as the main indicators of trade of electric power on a half-yearly basis, as well as prices of products on the «day-ahead» market and internal market. The given system of main indicators and structure of sales and purchase volumes on the electricity market of Ukraine can be a benchmark for improving the efficiency of Ukraine’s electricity market for the next period. The advantages of the new model of the energy market of Ukraine are the destruction of the monopolies of regional energy supply companies. Regional energy supply companies did not always control the quality of energy supply. The independent supplier has leverage and may impose fines for breaches of supply conditions. Ukraine will continue to move along the European vector of energy market development. Poland can be considered as an example of Ukraine’s energy market development. As a result of the development of the energy market in Poland, the former state-owned monopoly companies have lost most of their consumers.