24.04.2025
The different approaches to the accuracy of data used by NEC “Ukrenergo” in performing the functions of the Commercial Accounting Administrator (CAA) and the Settlement Administrator (SA) have caused difficulties for market participants in conducting business and settlements. In particular, as the CAA, NEC “Ukrenergo” records data of market participants in the Market Management System (MMS) in MWh with three decimal places. At the same time, as the SA, the company operates with data in kWh with three decimal places.
This is stated in an official appeal to Energy Club by the Club member – LLC “ENERGY 365”. The letter raises an important issue regarding unresolved discrepancies in the rounding of electricity volume data in the MMS, which is administered by NEC “Ukrenergo”.
“ENERGY 365” also draws attention to the fact that recent amendments to the Market Rules, approved by NEURC Resolution No. 527 dated April 8, 2025, stipulate the indication of electricity volumes in MWh with an accuracy of six decimal places. These changes come into force on July 1, 2025. However, according to the applicant, the implementation of these changes alone does not solve the existing problem of discrepancies between CAA and SA data in the NEC “Ukrenergo” system, which has been observed in previous periods as well.
Yurii Pidlisnyi – head of LLC “ENERGY 365” – an electricity and gas supplier and balancing group operator, commented on the consequences of NEURC Resolution No. 527 dated April 8, 2025, according to which the NEURC’s requirement for six decimal places in MWh will come into force on July 1, 2025, for energy market participants and outlined options for solving the problem.
– Mr. Yurii, what specific financial or operational difficulties does your company face due to the difference in data rounding between the CAA and SA functions in the NEC “Ukrenergo” system?
– When we calculate the balancing group and market participants, we take data from different sections of Ukrenergo. A discrepancy arises between the data on volumes. The NEURC wrote in its recommendations that it can be adjusted through corrections, but there must be a basis for this. And there is currently no basis for correction, because everyone operates transparently and does not violate legal norms. In 2021, the regulator made changes, and in 2023, the Central Information and Communication Platform DataHub (Datahub) – an information system with a database created, owned, and managed by Ukrenergo – began operating. With its help, Ukrenergo manages commercial metering data, master data, as well as the information exchange of this data in the electricity market. And since then, discrepancies have begun. This topic has been discussed twice at Energy Club, and the club has appealed to the NEURC on this matter. The regulator was understanding, but in the end, everything did not turn out as we asked. If the rounding of electricity volume data occurs from July 1st, then what about the previous periods? Different norms approved by the NEURC were in effect then. A vicious circle will form.
That is, the discrepancies between the CAA and SA data arose from July 1, 2023, and the norm will come into force on July 1, 2025. The question is: what to do with the indicators for two years?
– How significant are these discrepancies for your business? Can you estimate the scale of the problem, perhaps in percentages of volumes or financial indicators?
– Depending on the market participant, the scale of the problem can range from hundreds of thousands to hundreds of millions of hryvnias.
– What exactly, in your opinion, should NEC “Ukrenergo” or the NEURC change in their systems or rules so that this accounting problem is truly resolved?
– I think the simplest solution would be to change the accounting and settlements from the moment the problem arose – from July 1, 2023. Moreover, all data for this period is stored in the archives of distribution system operators’ (DSOs) readings. Yes, NEC “Ukrenergo” will have more work, but all data will be reconciled, and the discrepancy will disappear.
“Energy Club takes seriously issues that affect the efficiency and transparency of the Ukrainian energy market. We will carefully study the information provided by LLC ‘ENERGY 365’ and initiate discussions on this problem with Club members, the regulator, and NEC ‘Ukrenergo’ to find optimal solutions,” said Andrii Kostrytsia, President of Energy Club.
The received appeal once again emphasizes the importance of unification and accuracy of accounting processes for the stable functioning of the electricity market.
