Ukraine's Accession Protocol to the Energy Community (EnC) was signed on 24 September 2010 and ratified by the Verkhovna Rada on 15 December 2010. Ukraine became a full member of the Energy Community (EnC) since 1 February 2011. Article 2 of the Accession Protocol foresees that Ukraine implements a large number of EU Directives and Regulations which make up the so-called EnC acquis. The acquis contains thirteen (13) items, eight (8) of which should be implemented by 1 January 2012, two (2) by 1 February 2011, and one (1) each by 1 January 2013,2015, and 2018.
It is proposed that the extended ESBS Project supports the Beneficiary, the Ministry of Energy and Coal Industry of Ukraine (MoECI) in the preparatory work that is needed to implement the Accession Protocol during a period of twelve (12) months, starting on 30 September 2011.
Component 6 is divided into the following Tasks:
- Support the Beneficiary in the implementation of the two Directives and one Regulation related to gas markets issues, Items 1 - 3 in EnC acquis provided in Ukraine's Accession Protocol
The initial input will be to support Ukraine in de facto implementation of the Directives and Regulation belonging to current EnC acquis, based on the so-called Second Energy Package. In case the said legislation is replaced by the Third Energy Package and the corresponding new Directives contained in it, the support provided by the Project will be directed to tasks which will cover also the new issues addressed in the Third Energy Package and related new EU natural gas law (to the extent the also the newest legislation is included in the EnC aqcuis. For the time being, neither the so-called ACER Regulation nor the more recent EU legislation on natural gas are planned to be included in the updated EnC acquis.
This support will be closely coordinated with the Twinning Project implemented in NERC "Support to NERC in the process of implementation of the gas legislation in line with the provisions of the ECT in order to avoid any possible overlapping as well as with the ECT Secretariat.
- Support the Beneficiary in the implementation of the two Directives and one Regulation related to electricity markets issues, Items 4 - 7 in EnC acquis provided in Ukraine's Accession Protocol.
As in the case of Task 1.2, the initial input will be to support Ukraine in de facto implementation of the Directives and Regulation belonging to current EnC acquis, based on the Second Energy Package. In case the said legislation is replaced by the Third Energy Package the support provided by the Project will be directed to tasks covered by the Third Energy Package, but will not include more recent legislation, such as Regulations (EC) Nos 714/2009, 774/2010 and 838/2010, unless their inclusion is specifically requested by the Beneficiary.
- Support the Beneficiary in the implementation of the Directive relating to reduction in the sulphur content liquid fuels, Item 9 in EnC acquis provided in Ukraine's Accession Protocol. Also this Directive is scheduled to be implemented by 1 January 2012. Considering that there is no other EU-sponsored support currently available for Ukraine, work inputs by the Project are needed through the involvement of one or several NKEs specialized in this area.
- Support will be provided to the Beneficiary to implement concrete plans related to Ukraine's implementation of its Accession Protocol to the EnC and participation in EnC activities, including the following:
1. Assist in the preparation of Ukraine's participation in the Social Forum of the EnC and the accession of Ukraine to the EnC MoU on Social Issues.
2. Assist in the preparation of Ukraine's participation in the 22nd PHLG and the 9th meeting of the EnC Ministerial Council.
3. Prepare an expert opinion on the consequences to Ukraine of the planned incorporation of changes in Articles 11 and 59 of the EnC Treaty.
4. Render technical and expert support to address the issues related to security of supply and generally accepted standards under the EnC Treaty (Articles 22 and 29).
5. Provide expert support tn addressing the issues related to protection of the environment in context of the EnC Treaty.
- Support will be provided to the Beneficiary, in particular, in the implementation of the Large Combustion Plants Directive . The concrete work will be implemented by means of data collection, development of recommendations based on best EU practices (finance, technical aspects etc.), organisation of consultations with civil society and business as well as provision of Beneficiary with an analysis of experience of other ECT countries with regard to implementation of this Directive.
- Create a package to include legislative initiatives arising out of the obligations of Ukraine under the EnC Treaty.
- Prepare a review of on-going activities and best practices undertaken in EU Member States with regard to unconventional gas.
Recognising that the Memorandum of Understanding on Social Issues in the context of the Energy Community is becoming binding also on Ukraine, the project team will provide the Beneficiary with support in the drafting of a Social Action Plan, using the EnC Templates. Understanding the importance of the social dimension and recognising that the principles and the context for a social dialogue in the energy sector at both national and regional levels should be promoted also in Ukraine, the project team will, also through workshops and seminars related to the Social Action Plan, facilitate and promote effective social dialogue in the Ukraine.
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Support the implementation of the best EU practices related to the protection of vulnerable customers in the context of the EnC Treaty, taking into account the requirements of municipal sector in the provision of accessible and affordable services and formation of tariff policy on energy that reflects true production costs.
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Data collection related to the impact of corporatisation and unbundling of the entities on the employment in energy sector.
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Support for the development of restructuring options of energy companies in order to comply with EC Directives under II or III liberalisation package.