Experts discuss the rules of the common electric power market of the EEU

11 august 2017

The Analytical Center has hosted an expert meeting to discuss the rules of the common electric power market in the EEU where experts talked about the rules for accessing the services of natural monopolies and the rules for determining and allocating the throughput of the cross-country power transmission lines.

At the start of the meeting, the experts reviewed draft rules for determining and allocating the throughput of the electrical grid that would ensure the trading of electric power in the common electric power market of the Eurasian Economic Union. The goal of the rules is to prevent discrimination in the use of the participants in the common electric power market of the Eurasian Economic Union of the throughput capacity of the common power grid of the member states when transmitting electric power across the borders, selling it to and buying it from each other.

The Head of the Department for Special Projects and Analysis of Energy Markets of Inter RAO Valentin Gerikh noted that the document does not specify how the throughput capacity of power transmission line is to be estimated. "How are the neighboring system operators supposed to agree on the throughput capacity of their power transmission lines? It shouldn't be estimated in the market, let the system operators estimate it the way it's always been done," the expert said. In his opinion, it is not a market issue but an energy system reliability issue. The energy system must operate within permitted parameters, the specialist noted. Mr Gerikh also pointed out the rules don't say anything about how the available throughput capacity is to be allocated. "It should also be said that the throughput capacity does not ensure trade, it's just one of the prerequisite conditions for enabling it. The other such conditions include the actual selling and purchasing of energy, the difference in the price of electricity and many others," the expert explained.

The draft common rules for accessing the services of natural monopolies in the electric power market define the common principles and procedure for ensuring access to the services of natural monopolies operating as electric utilities as well as the procedure for providing such services.