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Ukraine sets about reforming energy market after decade-long preps

The document envisages the introduction of direct contracts between producers and buyers of electric power

Photo ITAR-TASS

Photo ITAR-TASS

KIEV, November 21 (Itar-Tass) — Ukraine, after a decade-long preparation, has set about reforming the energy market. The country's parliament passed the first reading of a bill on basic principles for the functioning of the electric power market on Tuesday night by 226 votes to 7.

The document envisages the introduction of direct contracts between producers and buyers of electric power. Part of electric power will be sold via an electronic trading floor -- analogue of an energy exchange.

The users will get the right to freely choose a supplier of electric power. A special state fund is to settle the problems of subsidizing the population and of "green energetics".

The fund will function until January 1, 2030, when preferences for renewable energy sources will be terminated in this country. The Fund will be replenished resultant of nuclear-power and hydropower stations willch will gain an additional income on the liberalized market.

All producers of electric power in this country currently sell it only through the state-run enterprise Energorynok (energy market).
In 2011, Ukraine generated about 195,000 million kilowatt-hours of electric power.

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