The Secretariat recommends improving draft legislation to transpose the CACM Regulation and to align VAT in Ukraine  

The Secretariat assessed the draft Laws amending the Electricity Market Law and the Tax Code of Ukraine, both related to enabling the coupling of the Ukrainian and the European markets and the allocation of interconnection capacities.

The Secretariat recommends, in particular, that the draft amendments to the Electricity Market Law apart of the Capacity Allocation and Congestion Management Guideline also incorporates other acts of the Energy Community’s electricity integration package, in particular the ACER Regulation. Moreover, the application of pan-European terms, conditions and methodologies (TCMs), the participation in developing regional TCMs, and a proper procedure and criteria for a NEMO designation require improvements in the draft.

The Secretariat further recommends introducing amendments to harmonize the Tax Code of Ukraine with the European VAT Directive.