2020 | vol. 68 | nr. 3 | art. 10

Reforming the Natural Gas Market in Ukraine: the Process of Unbandling (Unbundling Case)

Oleksii KUCHERENKO, Kseniia SMYRNOVA, Iryna LETUNOVSKA
Abstract
By choosing the European vector of development and trying to integrate into the European energy market, Ukraine has committed itself to implementing European directives and regulations (EU Third Energy Package) and is interested in creating effective institutional support in the gas market. Unbundling is a prominent issue in this package, and it leaves the Member States the choice of two options: “ownership unbundling” versus an “independent system operator”. According to the EU’s Third Energy Package, Ukraine needs to carry out the process of separating its gas transmission system from production and supply of natural gas or electricity — so-called “unbundling”. In general, the Third Energy Package is a package of laws aimed at increasing the efficiency of the energy market and creating a single market for gas and electricity in the EU. the purpose of this scientific and practical investigation is the issue of restructuring of "Naftogaz of Ukraine", the legal regime of use of property of distribution networks, further reform of the gas industry in Ukraine. The chronological order of the unbundling process in Ukraine was observed by analysing legal backgrounds & gaps in it. It was defined that the blocking process lasted until September 2019. With the arrival of the new government, an essentially new process of unbundling began, the terms of which were dictated by Naftogaz whose Executive Board is trying to retain control over the revenues from gas transit. Gaps & problems of GTS Operators (the new one as well as old one) were discovered. It was found that the new GTS Operator (Gas Transmission System Operator of Ukraine LLC), which was created by Naftogaz, continues Naftogaz's policy of including all problematic volumes of gas (no payment for which was received by Naftogaz) on the balance sheet of the GTS Operator.
Keywords: gas market, third energy package, acquis, EU, unbundling, Ukraine, energy regulator, trans gas pipeline
To cite this article: Kucherenko O., Smyrnova K., Letunovska I., “Reforming the natural Gaz market in Ukraine: the process of unbundling (unbundling case)”, in Electrotehnica, Electronica, Automatica (EEA), 2020, vol. 68, no. 3, pp. 80-85, ISSN 1582-5175.
https://doi.org/10.46904/eea.20.68.3.11080010

 

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