State of Compliance
Ukraine’s Law on Protection of Economic Competition transposes the competition acquis.
AMCU is one of the most active and rigorous enforcers of competition law in the Energy Community. It mainly focuses on investigating abuses of dominance, such as exclusionary conducts, which foreclose the market and harm consumers.
In the reporting period, AMCU rendered its decision in the DTEK case. Although it found that the company possesses certain market power, it concluded that DTEK could not have abused its market power because during the period investigated (2015 - 2017) the electricity market was regulated.
AMCU actively cooperates with the Secretariat and in the framework of the Energy Community Competition Network.
State Aid Law
State Aid Law
As has been pointed out in the previous Implementation Report, several provisions of the Law on State Aid for Business Entities are not in line with the State aid acquis. According to its provisions, existing State aid has to be brought into compliance with the Law within a timeframe established freely by AMCU in each individual case. This provision does not comply with the acquis and will lead to a delay in the enforcement of the State aid acquis.
Moreover, the Law on State Aid for Business Entities does not apply to aid granted for investments in infrastructure projects using state procurement procedures. This means that many infrastructure projects in the energy sectors could escape the application of State aid rules, which is also contrary to the acquis. Moreover, the Law prevents AMCU from requiring the recovery of State aid after ten years following the effective date of the regulatory and legal instrument or an executive order under which such aid was granted. However, the Law does not provide that action by AMCU will suspend the limitation period. The relevant provision should be brought in line with the acquis.
AMCU has started to actively review and monitor potential State aid measures. However, no decision has been taken in the energy sectors. Only active enforcement of the State aid acquis, i.e. the notification of State aid measures and their assessment by AMCU, will guarantee compliance with the State aid acquis.