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Posted: 3 years ago

AYFB Welcomes Decision of Sectoral Economics and Economic Policy Committee to Schedule Parliamentary Hearing

Non-governmental organization "Association of Young Financiers and Businessmen" welcomes the decision made by Sectoral Economics and Economic Policy Committee to schedule a parliamentary hearing related to the market reform in the electricity sector.

At the same time, AYFB addresses the leadership of Energy Exchange to make a clear explanation at the parliamentary hearing, what were the reasons behind postponing Energy Exchange for 6 months, and what measures are planned to be taken during this period. 

AYFB published the statement, which is as follows:

"It is already revealed, that about a month ago, AYFB was the first to issue the statement regarding the fact, that Energy Exchange could not be launched on July 1st and requested the appointment of a parliamentary hearing on this matter. This initiative already has its result. The hearing will take place on June 7th, at a meeting of the Sectoral Economics and Economic Policy Committee. At the hearing, the head of the Energy Exchange, Ms. Irina Milorava, is appointed as the co-reporter on the market reform in the electricity sector.

Due to the high public interest, AYFB calls on the management of Energy Exchange to make a clear explanation during a parliamentary hearing on the matters of causes related to the postponement of the opening date of Energy Exchange, what measures are planned to be taken during this 6 months, and to what extent is it possible for the Energy Exchange to be fully operational on January 1st, 2022.

Evaluated by AYFB, the energy exchange component is of high importance in the reform of the electricity market. Its full implementation should bring significant results to the market, such as creating a healthy competitive environment in the electricity trading market, establishing fair pricing, and minimizing corruption.

Therefore, the leadership of Energy Exchange needs to think thoroughly about whether they will be able to manage the process of full operation of the Energy Exchange within the determined timeframe when we are facing a catastrophic result and can not set a precedent for the deadline. To this day, stockholders and potential dealers face many challenges, problems, and unanswered questions. 

The fact is that the legal framework for a unified, efficient operation of the wholesale and retail markets is not yet complete. For local hydropower plants, especially small hydropower plants, it is impossible to predict because they do not have the appropriate measurements, metering systems. There is a problem with wind and solar power plants.

It is clear, that there is no legal framework for the unified, efficient operation of the wholesale and retail markets is not yet complete. For local hydropower plants, especially small ones, it is impossible to make some predictions, since they do not have appropriate measurements, metering systems. There are problems with wind and solar power plants. All this makes it impossible for market players to engage in the energy exchange trading system. 

AYFB calls on the leadership of Energy Exchange, to clearly answer all the questions on the parliamentary hearing and not to blame any of the issues on the pandemic. Additionally, AYFB believes, that Energy Exchange should present a plan in time, including the steps that are planned to be taken that will ensure operating Energy Exchange on January 1st, 2022.", is noted in the statement published by AYFB.