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2023-21, Ukraine: Better Services for Consumers in the Reformed Energy Markets
2023-21, Ukraine: Better Services for Consumers in the Reformed Energy Markets



START/END: 2021-2023


CLIENT: European Union, Delegation of the European Union in Ukraine

ORIGIN OF FUNDING: European Union, Delegation of the European Union in Ukraine

PARTNERS: - Ernst & Young LLC, - Elia Grid International



2023-21, Ukraine: Better Services for Consumers in the Reformed Energy Markets

Type of Services

LDK provides the following services in three main components of work


  • Activity 1.1. – Effective monitoring of electricity and gas retail markets – This will involve an assessment of the gas and electricity retail markets and recommendations on the content, format, and publication of the monitoring reports. Assistance will also be provided in preparing monitoring reports according to the new methodology.
  • Activity 1.2 – Effective unbundling of distribution companies – While the legal unbundling of distribution companies has been achieved, the functional unbundling is yet to be confirmed. Support will be provided to generalised improvements of NEURC’s regulatory framework for unbundling of distributors, including preparation of Compliance Programmes
  • Activity 1.3 – Reporting and monitoring system of the wholesale electricity and natural gas markets inspired by REMIT and improving the functioning and degree of competition in the wholesale market: Assess the current monitoring and reporting system for wholesale electricity and gas markets, and identify gaps and areas to intervene.
  • Activity 1.4 – Continuous monitoring of electricity market reform process: An assessment of the liquidity of electricity market segments and the organized electricity market will be performed. Measures and indicators used by EU NRAs to incentivize and increase liquidity and effectiveness of operation of all electricity market segments will be identified.
  • Activity 1.5 – Assistance to NEURC in regulatory approximation to the EU acquis and ad-hoc assistance. The project will support the translation of the draft normative and legal acts of NEURC in English. Assistance will also be provided in all stages of the consultation process of the draft normative and legal acts of NEURC. Proposals will also be prepared for improving NEURC’s internal procedures in developing normative and legal acts of NEURC in compliance with the EU acquis. Any ad-hoc assistance requested by NEURC will also be provided.


  • Activity 2.1 – Strengthen the role of the energy Regulator in protecting the rights of and empowering the energy consumer: The project will perform an assessment of the current situation, and provided recommendations and draft normative and legal acts in improving the current regulatory rules in the areas of supplier switching procedures, consumer access to information on retail prices, and a price comparison tool and unification of consumer bills. Recommendations will be made in introducing in the retail market demand management mechanisms, ‘prosumers’ and dynamic pricing. Recommendations will also be made on improving indicators for quality of services in transmission, distribution and supply of electricity and natural gas, and introduction of indicators on uninterrupted transmission and distribution of natural gas. A methodology will also be developed for organising customer satisfaction surveys and energy consumer check-lists for electricity and gas markets.
  • Activity 2.2 – Identify and assess energy poverty related issues originating in the energy sector markets and develop recommendation for addressing them: Assessment and recommendations on energy poverty will be undertaken, including the measurement of energy poverty. Critical issues in the area of energy poverty will be addressed, such as definition of the vulnerable consumer and draft legislation for their protection, and improving existing PSO regime in the electricity sector, including draft amendments.


  • Activity 3.1 – Information & Training: Training seminars and dissemination events, including the organisation of events in the region. A study tour with NEUR representatives to another EU Energy Regulator will be organised. The information and feedback channels of NEURC will also be analysed and recommendations for improvement will be made. Finally, NEURC’s website will be translated into English, including the main acts of legislation.
  • Activity 3.2 – Communication & Visibility: A Communication Plan will be prepared and implemented that will promote the visibility of the project, and the wider communication to the general public on the protection and empowerment of energy consumers.


The project aims to provide assistance in the Ukrainian public authorities in order to reform the electricity and gas markets in line with the provisions of the EU-Ukraine Association Agreement to the benefit of consumers.

The project supports the National Energy and Utilities Regulatory Commission of Ukraine (NEURC) in strengthening both the wholesale and retail electricity and gas markets of the country through improved market transparency and consumer empowerment. The monitoring and reporting systems for electricity and gas markets operation will be improved ensuring better functioning and effective competition for both wholesale and retail markets. The project also supports the development of strong retail electricity and gas markets that benefit consumers, strengthen consumer rights, and address energy poverty issues. Communication activities will also be undertaken to promote consumer empowerment and protection of energy consumers’ rights.

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