Energy Regulator Reform Just Begins – DiXi Group

22 September 2016

DiXi Group think tank welcomes a historical decision of the Verkhovna Rada as to strengthening independence of the energy regulator and calls upon ensuring its proper implementation.

We would like to remind you that today the Parliament adopted in the second reading and in total the Law "On National Commission for State Regulation of Energy and Utilities". 250 MPs supported the draft law.

The adopted draft law provides for an independent status of the NCSREU and its powers, as well as the criteria for the chair and members of the Commission. Furthermore, the Law specifies one and a half year rotation of a current Commission membership.

DiXi Group is asking the Chair of the Verkhovna Rada of Ukraine and the President not to delay the signing of the law, and to facilitate its implementation.

"Despite the complicated political process, a decision had to be adopted today, according to which the Regulator would either have some legislative framework, or its work would stay unclear for decades. The Parliament did not have enough votes to adopt an ideal law, yet this step ahead had to be taken at least to start the reform of the Regulator", DiXi Group think tank President Olena Pavlenko commented on today's voting.

"After the Law becomes effective, an important transition period begins. We promise to monitor carefully not only the election of new commission members but also how the regulator uses its new capacities. Individual decisions defining tariffs and rules of game on markets should become an object of attentive public control", DiXi Group Think Tank Program Manager Roman Nitsovych stated.

In early September 2015, creation of the Strategic Advisory Group was announced, which included leading Ukrainian and international experts and members of the parliament. The Group worked on improving draft law No. 2966 "On National Commission for State Regulation in Spheres of Energy and Utility Services".

During the group work, the experts discussed more than 190 remarks. The work of the Strategic Advisory Group was made possible by the Project "Facilitating Establishment of Independent Regulator in Ukraine" implemented by DiXi Group with the support of the International Renaissance Foundation.

It should be recalled that the importance of the law adoption was previously emphasized by ambassadors of G7 countries, EBRD and the EU Ambassador to Ukraine Hugues Mingarelli. The VR Speaker, Andrii Parubii, also promised the Vice-President of the European Commission Maroš Šefčovič that the law on the NCSREU would be adopted.

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