The Director of the energy community EU: the Prices for gas and electricity should be a market

Ukraine as a member state of the European energy community (EEC) is required to facilitate the liberalization of its gas and electricity markets. As the channel «112 Ukraine», such opinion was expressed by Director of the EEC Janusz kopacz.

«Liberalization means that prices are determined in a free market as a result of supply and demand. This means that prices will be roughly the same for all consumers, but not determined by the decision of the Cabinet of Ministers or any other government body. It also means that there will be a hidden cross-subsidies between different types of consumers,» – said kopacz.

According to the Director of the Energy community, the industry in developed markets does not pay for the population. At the same time, the government can protect vulnerable groups of consumers of gas and electricity.

«The liberalization of prices has its limitations in government intervention to protect vulnerable customers. The government determines which customers are vulnerable, based on their income, and provide adequate budgetary support for them, at the same time contributing to the market price,» – he stressed.

Market prices for gas in Ukraine since 2016 is calculated by the formula «Dusseldorf plus» (the average price of gas for the 12 months the German NCG hub + shipping to Ukraine), electricity – according to the «Rotterdam plus» (the average price of gas for 12 months in the Dutch hub ARA ports of Amsterdam–Rotterdam–Antwerp + shipping to Ukraine).

According to the national Commission, carrying out state regulation in the sphere of energy and communal services in Ukraine have the lowest in Europe electricity tariffs for households and industry.




The Director of the energy community EU: the Prices for gas and electricity should be a market 29.03.2018

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Март 29th, 2018 by
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