Ukraine prolongs emergency measures on power market for another month

The Cabinet of Ministers of Ukraine has prolonged emergency measures on the power market for another month.

The decision is stipulated in cabinet resolution No. 1195-r of December 8, 2014.

This regime gives extra opportunities to the National Commission of Ukraine for Energy and Housing and Utilities Services Regulation (NCER) in setting tariffs and making calculations, and to the energy system operator, Ukrenergo, in fulfilling its technical functions of transmitting and using energy capacities.

It was reported that on August 13, 2014 the Cabinet approved (order No. 372) the introduction of temporary emergency measures to tackle the effects of the prolonged disruption of the normal functioning of the electricity market and on the same day endorsed the need for taking such measures for the first time (order No. 764).

Temporary emergency measures can be introduced for a maximum period of one month. The Cabinet may decide to extend such measures but by no more than a month. In particular, during the period of such measures, electricity suppliers, regardless of their form of ownership, are obligated to operate in accordance with the standards for safe operation of the joint energy system and Ukrenergo's operational commands and instructions.

The need for such measures arose as a result of the hostilities in Donbas which led to a fall in coal production and its supply to power plants, the main consumers of the coal products, thus leading to severe energy shortages.

Subsequently these measures were extended twice, on October 1 and November 7.