Draft methodology for calculating tariffs for ancillary services presented under EU4Energy

Eu4Energy News
20 November 2018

On 20 November 2018, the draft methodology for calculating tariffs for ancillary services such as voltage control and black start that might be procured under a regulated process, if needed for a transitional period, was presented to the National Energy and Utilities Regulatory Commission (NEURC) and state enterprise NPC “Ukrenergo” in Ukraine under the framework of EU4Energy technical assistance. The new methodology will ensure efficient cost allocation in the procurement of ancillary services and effective functioning of electricity markets.

Following the presentation, the discussion focused on the methodology’s main principles and objectives, the pre-qualification process for providers, the procurement process and the ancillary services contract.

This technical assistance supports NPC “Ukrenergo” and NEURC in the preparation and development of an ancillary services market. Once adopted by NEURC, the methodology will serve to implement the Electricity Market Law, in line with the relevant provisions of the Third Energy Package.

The action is part of the EU4Energy support for Ukraine in reforming its wholesale electricity market in accordance with the Energy Community acquis.

* The EU4Energy Initiative covers all EU support to improve energy supply, security and connectivity, as well as to promote energy efficiency and the use of renewables in the Eastern Partner countries Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine. It does this by financing projects and programmes that help to reform energy markets and to reduce national energy dependence and consumption. Over the longer term, this makes energy supply more reliable, transparent and affordable, thus reducing energy poverty and energy bills for both citizens and the private sector.

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