The project “Better Services for Consumers in the Reformed Energy Markets- Phase II” is a follow-up to Phase I of the project and continues to support energy market reform in Ukraine with a consumer-centric approach. The project supports the National Energy and Utilities Regulatory Commission of Ukraine (NEURC) in strengthening both the wholesale and retail electricity and gas markets of the country through improved market transparency and consumer empowerment. The project also supports Ukraine in its new path for EU accession by assisting NEURC with the regulatory approximation to the EU acquis in energy market reforms.

The project consists of three main components: Component 1 focuses on the better functioning of energy markets and competition by improving the monitoring and reporting systems for electricity and gas market operators. Component 2 involves the protection and empowerment of energy consumers, the development of strong retail electricity and gas markets that benefit consumers, strengthen consumer rights, and address energy poverty issues. Component 3 includes the communication and training activities of the project.

Overall Objective
The overall objective of this project is to support Ukrainian public authorities in advancing reforms of the electricity and gas markets, in line with the provisions outlined in the EU-Ukraine Association Agreement to the benefit of consumers.
Specific Objective
The project will provide targeted support to the National Energy and Utilities Regulatory Commission of Ukraine (NEURC), as the project beneficiary, as well as to other relevant stakeholders. The specific objectives include the following:
• Improve the functioning, transparency and competition of Ukraine’s wholesale electricity and gas markets.
• Support the development of electricity and gas retail markets that benefit consumers, including through strengthening consumer rights.

Component 1 - Improved markets functioning and effective competition
• Assess the gas retail markets operation in Ukraine using methodology of CEER/ACER and prepare recommendations to improve the functioning of natural gas markets as well as ad-hoc assistance in the elaboration of regulatory amendments to comply with EU acquis. Technical assistance to facilitate the implementation of REMIT and capacity building of NEURC on monitoring wholesale electricity and natural gas markets.
• Recommendations for the following: Introducing storage systems for security of supply & balancing purposes, as well as market mechanisms to support storage systems (e.g. tenders); Introducing flexibility services in distribution systems in order to improve efficiencies in the operation and development of the distribution system.
Component 2 – Consumer protection and empowerment
• Regulatory and legal framework for Non-technical losses and regulatory amendments for Demand Response as well as assessment of the potential for dissemination of dynamic electricity price contracts on the retail market.
• Strengthening consumer protection through enabling regulatory framework for citizen energy communities, prevention of unfair competition, access to consumption data and information and development of measures to tackle energy poverty.
Component 3 - Information, training and dissemination
• Organisation of 6 online training workshops and further implementation of the project’s Communication Plan.