By KYIV. Dec 12 (Interfax-Ukraine) – The National Energy and Utilities Regulatory Commission of Ukraine (NEURC) insists on the imposition of major sanctions against participants-violators in the electricity and natural gas markets as part of the implementation of Regulation (EU) 1227/2011 on Wholesale Energy Market Integrity and Transparency (REMIT) in Ukraine.
"Now there is a lot of debate about the amount of sanctions that can be imposed on market participants who have committed abuses. We, as a regulator, insist that the sanction be large, because a large sanction is a preventive measure that deters participants from violations," NEURC member Olha Babiy said during the Energy Club’s discussion of bill No. 5322 on the prevention of abuse in wholesale energy markets, which implies the implementation of REMIT.
According to her, the regulator has no intention to apply these sanctions, and members of the commission hope that the amount of the sanctions will become a safeguard against violations for market participants.
As reported with reference to head of the Verkhovna Rada Committee on Energy, Housing and Utility Services Andriy Gerus, bill No. 5322 may be adopted before the end of this year.
As Babiy explained, compliance with Regulation (EU) 1227/2011 within the country and the proper transmission of data by market participants about their commercial activities are one of the conditions for trading on European platforms.
In EU practice, the most common manipulations include, in particular, the sale of more than 50% of electricity produced and purchased by affiliates, as well as an application for the purchase and sale of electricity in the spot market, which is unreasonable in terms of the ability to produce or sell the declared volumes.
According to Babiy, the regulator, as part of applying sanctions on violating participants, can suspend their activities, fine them, and also apply additional preventive measures to prevent violations.
"I want to assure all market participants that preventive measures and sanctions will not be of a dual nature. Secondly, I emphasize that the regulator will adopt a procedure for applying sanctions and a procedure that will be clearly defined and will not allow the regulator to exceed its powers," she stressed.
