Ukraine urged to reform public service obligation scheme in the natural gas sector (25.08.2017)
The Energy Community Secretariat, together with the World Bank, has submitted to the Ukrainian authorities a new draft public service obligation act on natural gas market participants aimed at assisting the country in reforming the existing non-compliant scheme and the swift closure of Energy Community dispute settlement Case ECS-2/17.
Together with the lack of unbundling of the transmission system operator, the country’s current public service obligation scheme presents the biggest obstacle to gas market reform in Ukraine by maintaining a monopoly position of the incumbent gas suppliers. The new draft public service obligation, which was drafted jointly by experts of the Secretariat and the World Bank and sent in the form of a draft resolution along with an explanatory note to the Ukrainian authorities, is aimed at securing natural gas supplies to the most vulnerable categories of customers, whilst enhancing competition on the gas market and ensuring customers can practice their supplier switching right in line with the Energy Community gas acquis.
The Secretariat initiated Case ECS-2/17 on 22 August 2017. In its Opening Letter, the Secretariat took the preliminary view that public service obligations imposed on subjects on the natural gas market by Resolution No 187 of the Cabinet of Ministers of Ukraine of 22 March 2017 do not comply with the Energy Community acquis communautaire on natural gas.
Verwaltungsreform von Naftogaz
All independent directors of Naftogaz to quit the Supervisory Board because the government is derailing the reforms (19.09.2017)
(…) Today the remaining two independent members of Naftogaz Supervisory Board have informed the company about their decision to resign. Independent Supervisory Board Members Paul Warwick and Marcus Richards explained their decision by the government’s lack of commitment to duly implement the corporate governance reform.
“The independent Supervisory Board members made it very clear to the Government in April 2017 that their continuing involvement in this critical reform project was contingent on material progress. Despite assurances from senior politicians, deadlines have passed and commitments have not been delivered with an environment of government control, not envisaged in the Corporate Governance Action Plan. Increasing political meddling becoming increasingly evident and, unfortunately, the norm. Essentially, no material change has occurred over the last five months despite the assurances we received to the contrary”, said Paul Warwick, Chairman of the Supervisory Board, in his letter.
Gesetzentwurf der Regierung über das Verbot der Privatisierung von Gastransportsystem
“The Secretariat [of the Energy Community – Anmerkung der Redaktion] sees the Draft Law 6778 as a serious obstacle to the unbundling of the transmission system operator in line with the Third Energy Package as well as a threat to Ukraine’s future as a transit country for natural gas to Europe. Unfortunately, the tabling of this Draft Law is not the only step in this direction. We recently observe an increased activity by the Ministry of Coal and Energy and the management of MGU [»Mahistralni gasoprowody Ukrainy« (Hauptgasleitungen der Ukraine) – der von Naftogaz Ukrainy unabhängige neugegründete Gasleitungsnetzbetreiber, der die Aufgaben von Untransgaz übernehmen soll – Anmerkung der Redaktion] essentially aiming at perpetuating control over the gas transmission and storage assets without respecting the country’s obligations under the Energy Community Treaty. We believe it is high time to come to a solution of this issue in the true interest of Ukraine and not in anybody’s particular interest. The Secretariat will promote and facilitate such a solution. As a first immediate step, we request that any further legislative procedures of the Draft Law are cancelled without delay.”
Quelle: Naftogaz reform briefing, <http://www.naftogaz.com/files/Information/2017-09-20-Briefing-engl.pdf>