The Law "On principles of the electricity market operation if Ukraine", implying liberalization of the wholesale electricity market of the country, came into force on 1 January 2014.

Parliament adopted the law on liberalization of the energy market on 24 October 2013. It was published in the "Uriadovyi Courier" governmental newspaper on December 18.

Several provisions of the law will come into effect later.

Currently in Ukraine there is a single buyer energy market, while the new law provides for the implementation of a model of direct contracts, "day-ahead" market and the balancing market, which will provide an opportunity to adjust the imbalance that occurs in the production of electricity. 

The most controversial issue in the bill is the creation of a fund for settling cost imbalance and its pumping up solely at the expense of nuclear and hydro power plants.


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