Presentation of the Energy Transparency Index: How many scores did Ukraine get in assessing the openness of the energy market
On December 3, 2018, a presentation of the Energy Transparency Index took place at ONE LOVE Coffee lounge hall at PinchukArtCentre.
The event was held within the framework of USAID project Initiative for Counteracting Corruption and Improving Fiscal Transparency in the Energy Sector in Ukraine (Transparent Energy), implemented by DiXi Group.
The purpose of the event was to present the developed Index and discuss its importance as a tool of evaluation of informational openness of the energy sector for the Government and other stakeholders, in particular market participants, civic organizations, and the media.
The index is intended to become an integral assessment of the information openness of the energy sector, which can be applied not only to Ukraine but also to the countries of the region (for example, contracting parties of the Energy Community) with the possibility of further dynamic rating by energy efficiency indicators.
“While developing the Index, we were based on the analysis of applicable requirements and standards, in particular the provisions of the EU legislation on energy markets and company reporting. The international practice was also studied. The result was a system of 287 indicators, which answers the question as regards both the key energy sectors and specific issues. In particular, we have dedicated one of the main blocks to the information that the final consumer should receive. We are ready to discuss and improve the methodology to apply the Index not only to Ukraine but also to other countries. For further Index issues to be even more interesting», Roman Nitsovych, DiXi Group project manager, said.
As for Ukraine, according to preliminary estimates of the first issue of the Index, its final score was 43 (out of a possible 100). This indicates that the openness of the domestic energy market is insufficient.
DiXi Group senior legal expert Denis Nazarenko noted that while preparing opinions and recommendations, based on specific actual evaluations, the team noted the sectors with the highest degree of transparency, as well as the worst indicators: “In addition, the opinions were based on the study of evaluations based on certain transparency criteria – the availability of information, its completeness, relevance, ease of use, etc. Accordingly, the recommendations for increasing transparency were formed on the basis of identified areas requiring improvement. This approach enabled the preparation of a well-grounded material for the further development of the transparency action plan both within certain sectoral sections that were the subject of evaluation and on the scale of all the categories under assessment, based on the identified common deficiencies in the methods and extent of disclosure”.
We remind that the index is being developed within the framework of the USAID projectInitiative for Counteracting Corruption and Improving Fiscal Transparency in the Energy Sector in Ukraine (Transparent Energy), implemented by DiXi Group.