Ruslan Magomedov at the Ukrainian Energy Forum: New Markets – New Opportunities

Ruslan Magomedov, Chairman of the NSSMC, and Arsen Ilyin, Commissioner, outlined aspects of energy market regulation by the NSSMC. The Commissioners talked about this with colleagues and market participants at the Ukrainian Energy Forum.

«The NSSMC is becoming one of the regulators of an extremely important market for our country which is energy market. Legislation is changing, our market and the European market are synchronized, and the requirements for market participants are synchronized. Therefore, together with our colleagues from the energy market regulator NERC we have to find the optimal model of interaction. This interaction should be about partnership and strengths, our property. And the most important (concerning benefits for the market and consumers) is confidence in fairness, comfortable processes of purchase, payment and supply of electricity», – said  Chairman of the NSSMC.

The purpose of adapting domestic energy legislation to the requirements of the REMIT is to build an effective system of control and supervision, as well as to ensure fair pricing of energy products. One of the first steps towards the implementation of the provisions of the REMIT was the inclusion of the term «wholesale energy product» into the Law of Ukraine on Capital Markets and Organized Commodity Markets, which entered into force on July 1, 2021. Thus, the NSSMC has joined the regulation of the energy sector.

«The energy market as a commodity is a new segment for us, so, of course, we will start with the legislative regulation of key issues. Among them there is the establishment of a ban and liability for insider transactions and manipulation of wholesale energy markets. In addition, we will focus on the creation and operation of a system for consolidating information on transactions in energy markets, as well as providing mechanisms to combat abuse, in particular by establishing mechanisms for interaction between financial market regulators and energy», – said Arsen Ilyin, Commissioner.

According to Mr. Magomedov, the NSSMC has a clear vision of the movement, an action plan and is already getting to work.

«We expect that all this will have a positive impact on improving the effectiveness of government regulation, including control and supervision of activities in both energy and financial markets. New markets are new opportunities for their participants and the state. Opportunities for development and progress», – he concluded.