Today, Director Kopač met with Ukrainian Prime Minister Groysman and Vice Prime Minister Kistion to discuss the state of play of the country’s gas sector reforms. The meeting focussed on the public service obligation (PSO) act on natural gas market participants and unbundling of the country’s gas incumbent Naftogaz.
Director Kopač presented the basic solutions of the new draft PSO act, which was co-designed by the Secretariat and the World Bank. The aim of the new PSO act is to introduce competition and transparency in the retail market. The current PSO act, which is not complaint with the Energy Community acquis communautaire on natural gas, establishes a monopoly on the retail market and endangers the entire gas sector reform process due to the rapidly decreasing gas collection rate.
The emerging obstacles to the unbundling of Naftogaz were also discussed. Director Kopač presented the common concerns of all international financial institutions and donors, discussed at a meeting in Kyiv yesterday.
The parties agreed to develop additional proposals and meet again in two weeks’ time.