The people’s Deputy from “Servants of the people” Buimister offered to return for a year formula-based pricing in the electricity market

Нардеп от "Слуги народа" Буймистер предложила вернуть на год формульное ценообразование на рынке электроэнергии

To save energy Ukraine, should be returned to government regulation and formula-based pricing in the electricity market, said on his page in Facebook the people’s Deputy of Ukraine, member of fraction meadow people Lyudmila buymister.

“To prevent the collapse of the basic industries – energy, and the need of finding another 50 billion to save the industry urgently needs to regain energy regulation, including temporary return to price regulation for the industry, using import parity pricing for coal similar to the current pricing of gas that was objective and predictable price marker”, – wrote buymister.

The MP said that before the introduction of the electricity market a year ago was acting formula-based pricing (“Rotterdam plus”) – which after the abolition of the power engineering sector was in crisis. In particular, energy companies have substantial losses, debts of market participants amounted to tens of billions, almost stopped the coal industry and the miners came to the protests. According to the politician, the pricing formula must be entered as a temporary measure for a year. Then enter the full electricity market, taking into account and correcting mistakes.

“During this time, you need to analyze the mistakes made, to conduct the reorganization of the finances of power utilities, restore fiscal discipline, return predictability prices of the current, tightly cover up the loopholes for corruption and then with the Energy community Secretariat and international partners to implement a full-fledged market. Without any administrative restrictions, and the corresponding distortions”, – said buymister.

From 1 July 2019 was introduced a new model of the electricity market. She has replaced the so-called pool model, in which prices are regulated by the state. The cost of electricity for industry was calculated in accordance with the decision of the national Commission №289 dated March 23, 2016 “On approval of the procedure of forming the projected wholesale market price of electric energy” (the so-called formula “Rotterdam plus”). It has established the predictive value of electricity exclusively for industrial consumers for the period 2016-2019 and to include the cost of delivery of coal from the hub Amsterdam-Rotterdam-Antwerp for the whole coal. The formula was abolished on 1 July 2019 with the introduction of the electricity market, then the price of coal and electricity for manufacturers has increased.

The price of gas for the population since February 2020 set by the same formula “Amsterdam plus”. The government Alexey Goncharuk introduced, and the government of Denis Smagala approved the Memorandum with the IMF, this approach to determining gas prices for the population. It will incorporate the cost of delivering gas from the Netherlands – exchange TTF.

Deputies
The government

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