Ukraine Adopts Law to Align Gas Market with EU Third Energy Package
The Ukrainian parliament adopted a law meant to align its natural gas market with the EU’s Third Energy Package, in an effort to move closer to the pillars of “ownership unbundling” and the establishment of National regulatory authority. The law will take effect immediately, but it will be applicable from October 2015.
‘The law introduces mechanisms to prevent anti-competitive practices by gas system operators, distributors and suppliers related to gas storage, distribution systems and LNG development’ reads a note released by Naftogaz, which took part to the working group that drafted the law.
According to the Ukrainian company, the wholesale and retail gas markets will be based on free price system.
‘The law creates the preconditions for a reformed natural gas market, based on the principles of free and fair competition focused on providing a high level of protection to consumers. These mechanisms should enhance competition due to entry of new market players, which in turn will be a driving force for reducing energy prices.’
Ukrainian authorities already made clear their intention to open the doors to European and American investments in its energy markets.
“This law is an important step towards Ukraine's integration with the European Union. It transparently opens our natural gas market to investors, stimulates competition and clearly outlines the functions of the State” Naftogaz CEO Andriy Kobolyev commented.