NERC took another step toward monopolization of exports of electricity. On Friday, the Board modified the rules of the auction for the sale section for electricity exports. The minimum starting price of reduced cross section 100 times. A power operator Ukrenergo given the right to claim itself the outcome of tenders. Market participants welcomed the Commission's decision - in their view, it would allow for 40-50% increase exports of electricity after the first auction.

The initial draft regulations, published at committee on 11 June, starting price of the lot was determined by a complex formula. The tariff for power transmission backbone and inter-state electricity networks have been multiplied at the first adjustment factor from 0 to 10, which was to determine the Ministry of Fuel and Energy for each export of electricity, and then for a period of service on the Lot, by the amount of bandwidth, and electricity by 1000.

Of the current version of the formula removed correction coefficient, a multiplier of 1000 is replaced by the formula 10. That is the starting price reduced cross section 100 times. The new document also facilitated the formation of auction commission. Originally it was expected that the committee will consist of three members - one representative of NERC, and the Ministry of Fuel and Energy NEC Ukrenergo (manages trunk grid). Now, the personal composition of the commission adopted the order of Ukrenergo, ie it can be included only representatives of the company.

Remember, in early June, NERC approved a draft decree, which stated that any энергогенерирующая company licensed to supply energy for non-regulated tariff, can participate in auctions to buy cross-section of interstate power networks in Ukraine. Auctions had to hold NEC Ukrenergo, owns electricity transmission lines.
 

Market participants were satisfied with the decision of the commission. Too high starting price initially allowed not to allow competition to many participants, especially those who are able to export to countries where the cost of electricity is traditionally low - in Russia and Moldova. Reduce the starting price would increase the number of participants in the competition and to download these directions, -- said the president of NAC Energy Company of Ukraine Vladimir Zinevich. He recalls that in Russia and Uzbekistan electric power is not supplied, and a 550 MW power Burshtynsk energoostrova involved only 50 MW. Zinevich appreciated the fact that the auctions will be approved only NEK Ukrenergo. In the experience of conducting auctions Ukrnafta I can say that the need to reconcile the results with a large number of instances only byurokratiziruet and difficult process, - he said.

Chairman of the power generating company Dniproenergo Yuri Bochkaryov predicts that the introduction of more simple rules of the auction will help after the first bid to boost exports of electricity by at least 40-50%. The production of electric power plants as a result of seven months, fell by 48%, while exports of electricity - at 59.8%. At the same time in foreign markets, our electricity is quite competitive on price. Let's hope that with the liberalization of exports, we will no longer be such an amazing trends, - said a source in ANCEX Energoatom. Head of external communications Korlea Invest Holding (Ukrainian electricity imports from Ukraine to the countries of Eastern Europe), Andrew Komendo refused to comment on the draft NERC.