Guarantees for fulfilling obligations under electricity supply contracts in the forward market

On April 18, the Auction Committee for the sale of electricity under bilateral contracts approved the introduction of a mechanism for forming and submitting collateral to secure obligations under bilateral contracts, in accordance with the Cabinet of Ministers of Ukraine Resolution No. 99 dated June 5, 2019. This was preceded by the problem of non-fulfillment of electricity purchase and sale agreements by buyers, which periodically occurs in the Ukrainian electricity market and causes significant losses to generating companies. At the same time, some market participants (buyers) are concerned about the introduction of a security deposit for the execution of agreements. Therefore, this online meeting aims to analyze possible risks, determine strategic priorities, and consider international experience in risk management for electricity supply contracts in the forward market, using Poland as an example.

Objectives:

• To evaluate approaches to risk management mechanisms and ensuring the fulfillment of obligations under concluded bilateral contracts in the electricity market.
• To identify the main vectors for the development of the Ukrainian exchange market for bilateral contracts (RDD).
• To develop strategic recommendations regarding effective mechanisms for guaranteeing the country’s energy security in the context of the meeting’s topic.

Moderator

Maksym Nemchynov

Vice President of Energy Club, former Deputy Minister of Energy of Ukraine

Speakers:

• Krzysztof Rogulski, energy expert, director of a consulting company (Poland)
• Irakli Baramia, member of the NSSMC (National Securities and Stock Market Commission) (invited)
• Oleksandr Grechko, Head of the Regulatory Policy Department at Ukrhydroenergo
• Yuriy Pidlisnyi, Head of ENERGY 365 LLC
• Representatives of electricity suppliers and traders — members of Energy Club