Why choked the attack on the electricity market

Почему захлебнулась атака на рынок электроэнергии

The team of the new President for the past two weeks talks about the need to postpone the launch of the wholesale electricity market, scaring the growth rates and the collapse of the industry. But, for the audience to discuss problems in energy, national security Council, opponents of the timely market launch passed back by giving the government two weeks to resolve potential problems.

His first presidential status in the security Council meeting Vladimir Zelensky decided to convene after the tragedy at the mine “Forest” in the Lviv region, which killed two miners. However, during the meeting discussed not only the problems of the coal industry, but also the upcoming launch of a new electricity market scheduled for 1 July. The level of the national security Council this topic formally raised the newly appointed Deputy head of SBU Ivan Bakanov. The day before he was sent to the leadership of the Parliament and the government a letter, which said that the timely launch of the market threatens national security. But, judging by results of session on Bankova, the level of “threat” was too exaggerated.

According to NSDC Secretary Oleksandr Danilyuk, the Prime Minister was able to convince the participants that the government will not allow the increase in electricity tariffs, regardless of the start date of the market. But, nevertheless, the idea is to postpone the start of the market on Bank still refused. The government was given two weeks to make it has taken final decision to start the market of July 1, or to convince the deputies to postpone to a later date. Vladimir Groisman, in turn, promised that at the next meeting of Cabinet will be taken for missing decision and the market will work in time.

Sounded the retreat?

It should be noted that the opponents had already tried to pause it through the Parliament, but failed. In the Parliament registered two draft law on the postponement of the start of the energy reform on October 1 and April 1 of next year. First, however, the deputies refused to include one of the draft laws in the agenda of the session, and later the parliamentary Committee on energy, where he was to discuss these bills, and could not hold the meeting for lack of quorum. And it’s not the fact that Parliament has “all gone to the polls,” rather in the unwillingness of the deputies to pour water on the hands of foreign interests.

It is no secret that the debate about the start date of the market turned with a feed close to the new President, the oligarch, said that the market should be postponed indefinitely. Ferroalloy plants owned by Igor Kolomoisky, one of the largest consumers of electricity, its price directly affects the profitability of these enterprises. To increase the profitability of the Ferroalloy business, having preferential tariffs on electricity, but in a free market and transparent tariff-setting is impossible.

Wave of information on the postponement of reforms has picked up a number of experts and MPs. While market participants in unison assure a month to work on the new rules and the ability to cope with possible technical irregularities on the March.

In addition, a key argument of opponents of reform – the increase in electricity tariffs for the population – successfully repelled the government. Spacebattles to subsidize the citizens entrusted to state company “Energoatom” and “Ukrhydroenergo”, changes in the payment ordinary people from July 1 will not see. As the price of electricity for businesses, according to experts, the oscillations will be insignificant. And in the future launch market will create prerequisites for reducing the cost of current due to the competition in the market, opportunities for consumers to choose suppliers and enter into direct contracts with producers of electricity.

It is also important to protect the market launch in the period were made by the representatives of the European Union. In particular, the Vice-President of the European Commission Maros Sefcovic called the liberalization of the electricity market from 1 July the primary task for the Ukrainian authorities. And reminders from the European partners that the launch market is one of the conditions for granting Ukraine loans, are unambiguous. This year Ukraine expects to receive $ 2.5 billion from the IMF and EUR 500 million of macro-financial assistance from the EU. The IMF mission worked the last two weeks in Kiev, was a visual reminder – a retreat from the commitments result in a stoppage of lending.

No matter how agitated Igor Kolomoisky, President of the newspaper Financial Times to refuse IMF loan program and defaults on the Bank, apparently not willing to follow this advice. Hyperinflation, the freezing of social benefits and wages, rising prices as a result of default – does not expect the new President to his voters.

Obviously, the proponents of postponement of the market did not dare to derail it through the national security Council immediately – otherwise just on the first meeting of the Council would have dropped the mask and all finally became clear that this Council is going to defend not the interests of the state and the interests of Kolomoisky. And threw the ball field of the government, who will for the remainder of the time “CH” month to minimize all potential threats. With the head of the Cabinet of the new President’s relations not specified in his inaugural address, he urged all Cabinet members to resign, and did so in a form that is not the correct name. However, Groisman written on the same day the resignation of the deputies refused to satisfy that showed the head of government enjoys significant and well-deserved reputation among MPs. But there is no doubt, in the event of failure of the launch market for a long time to look for the culprit on Bankova street will not. On the other hand, there is no doubt in the fact that pretty well schooled in the hardware game Groysman, all these risks have been counted and, most likely, will choose the only correct tactics: to act according to the law you can’t go wrong. The law States that a competitive wholesale electricity market must be opened from 1 July 2019.

Dance to the tune of Kolmoyskogo is not in the interests of the Prime Minister. Volodymyr Groysman has already set his sights on Parliament, and for his timely launch of the market – not only honorable but the final chord of the Prime Minister’s cadences, on which he can build his political career as an official, for the first time in the history of Ukraine has achieved timely implementation of reforms, which for many years insist the EU and the USA. But it is also an opportunity to give an adequate response to the humiliation which Groisman was subjected to the representatives of the new ruling team. In the work “study of history” the famous British historian Arnold Toynbee described the system of “challenge-response” call on the part of aggressor needs to run a decent answer, who of aggression have been made. For example, Austria small ertsgertsoga has become a powerful Austro-Hungarian Empire thanks to decent response to the military challenge of the Ottoman Empire. So in our case, Groisman intends to shape their political future on the basis of adequate answers to those who try to humiliate him.

By the way, the new President would not be a bad idea to read this work Toynbee: Vladimir Zelensky timely introduction of the electricity market – ability to demonstrate the ability to say “no” to those who helped him take the top post in the country, and is now aggressively put pressure on the President, demanding the satisfaction of their business appetites to the detriment of the interests of the state.