Secretariat welcomes agreement between the TSOs of Slovakia and Ukraine on revenue sharing in unilateral auctions

Following negotiations between the Ukrainian and Slovakian transmission system operators (TSOs), Ukrenergo and SEPS ,facilitated by the Secretariat, an agreement has been reached on the sharing of congestion revenues between the two companies. The TSOs perform unilateral capacity auctions on the interconnector connecting their system.

The agreement will allow electricity exports from Ukraine to Slovakia to resume. They have been halted on 21 April 2023 in the absence of an agreement on revenue sharing. Electricity markets in Ukraine operate at a lower price than those of the Member States of the European Union. Ukrenergo signed the agreement yesterday following approval by the Ukrainian regulatory authority NEURC. Going forward, Ukrenergo and the neighbouring TSOs will implement joint cross-border capacity auctions on all borders, which has recently been made possible by changes to the Electricity Market Law and changes in the national tax legislation of Ukraine.