The Secretariat commends Ukraine's adoption of REMIT Law

The Energy Community Secretariat warmly welcomes the Verkhovna Rada of Ukraine's recent adoption of the "On Amendments to Certain Laws of Ukraine as to Prevention of Abuse in the Wholesale Energy Markets" (REMIT Law) on May 10th, 2023. This landmark legislation transposes adapted for the Energy Community framework Regulation  (EU) 1227/2011 on wholesale energy market integrity and transparency (REMIT Regulation) into Ukraine's legal framework, further aligning the country's energy markets with European Union (EU) standards.

"The adoption of the REMIT Law marks an important step on Ukraine's path towards further electricity and gas market integration with EU neighbors. It will promote trust in the transparent functioning of the Ukrainian energy market and create the necessary level playing field between Ukrainian and EU market participants, especially in view of market coupling in electricity " stated Artur Lorkowski, Director of the Energy Community Secretariat.

The Energy Community Secretariat has long supported Ukraine in implementing the REMIT Regulation, providing technical and legal assistance since 2020. This assistance has included dedicated technical support through the EU4Energy format, specialized workshops, seminars on regulatory knowledge transfer, and thorough legislative review of drafts. The Secretariat remains committed to supporting Ukrainian stakeholders in the practical implementation of the REMIT Law and its associated regulations.

The REMIT Law, inter alia, envisages that for the first two years, the NEURC makes decisions within its authority in cases of application of penalties for abuses in the wholesale electricity and gas markets after consultations with the Energy Community Secretariat.

With the recent emergency synchronization of the control block of Ukraine and Moldova with Continental Europe, which ensured diversified and secure electricity supply during the winter, the REMIT Law assumes even greater significance. It will play a central role in facilitating growing commercial exchanges, joint cross-border transmission capacity allocation, and the eventual electricity market coupling between Ukraine and the EU. These developments are in line with the market integration path outlined in the package of new electricity Energy Community laws adopted in December 2022, as well as the Roadmap for Further Market Integration devised by the High-Level Working Group on Energy Market Reforms between the EU and Ukraine.

In addition to transposing the REMIT Regulation, the REMIT Law introduces amendments pertaining to cross-border capacity allocation, streamlining commercial electricity exchanges between Ukraine and its EU neighbours by providing the necessary level playing field. This will enhance cooperation and facilitate a more efficient and interconnected energy market.