Executive Summary:

1. The Bilateral agreements segment mainly represented volumes traded under the Public Service Obligation (PSO) obligations during the first week, which correspond to more than one third of the market volumes. The centralised auction platform for bilateral agreements with state-owned generation showed mixed results, with only one company, aside from PSO obligations, being successful in selling electricity during week 1 and 2.
2. While volumes traded in Burshtyn energy island [BEI] stabilised, volumes on the day-ahead market (DAM) in the united power system [IPS] decreased more than demand for electricity. This can indicate a gradual switch from DAM and Intraday Market (IDM) to Over-the-Counter (OTC) trading segments.
3. Data availability is still mixed. Prices and volumes for key market segments (bilateral auctions, DAM and IDM) are published, as is information on electricity trade and dispatch by plant type. At the same time, information on the balancing market is limited and was not updated regularly. Information on cross-border hourly commercial volumes, OTC and bidding behaviour are not centrally available.
4. Day-ahead prices in Burshtyn were higher than those in the rest of Ukraine. Exchanges with the EU are not yet following a commercial logic – we see exports to the EU though EU-prices there being lower than in Ukraine.
5. Finally, market opening has not yet visibly affected the dispatch of power plants.

As of now, it looks as if the “market” has been transferred from one regulated system organised through a single buyer, to another regulated system organised around different market segments.