Reform Index 216: Preventing Abuses in Energy Markets and Granting Combatant Status to Volunteers

Reform Index 216: Preventing Abuses in Energy Markets and Granting Combatant Status to Volunteers

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4 September 2023
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In issue 216 (issue 209 before the audit) of the Reform Index, seven reforms have been included for the period from July 2 to July 17. The Index’s overall rating is +0.9 points on a scale ranging from -5 to +5 (in the previous issue, its value was also +0.9 points).

Chart 1. Reform Index Dynamics

Chart 2. Reform Index and its components in the current round

The law on preventing abuses in domestic energy markets, +1.5 points

The Law on Prevention of Abuses in Wholesale Energy Markets introduces into Ukrainian legislation the provisions of the EU Regulation on Wholesale Energy Market Integrity and Transparency (REMIT).

The document expands the powers of the National Commission for Energy and Utilities Regulation (NСEUR) to monitor and investigate abuses in the energy and utilities sectors. In particular, the NСEUR will determine what specific behavior in the energy markets constitutes a violation or an attempt at manipulation and investigate such incidents.

The law also defines the concept of insider information in the energy markets and establishes rules for handling it. In particular, transmitting or disclosing such information or using it for trading agreements is prohibited.

Furthermore, the new law has expanded the application of reduced coefficients for the green tariff on wind power plants commissioned from January 2020 until the end of June 2023 (at 0.975) and from July 2023 onwards (at 0.825).

Information about the Reforms Index project, the list of Index experts and the database of the regulations assessed are available here.

The granting of combatant status to volunteers (civilian individuals who directly participated in the defense of Ukraine) has been regulated, 1.5 points

The Cabinet of Ministers of Ukraine has regulated the procedure for granting combatant status to civilian individuals who, since the beginning of the full-scale war, joined the front as part of volunteer formations and, therefore, were not officially documented.

As of March 2022, Ukraine had registered over a hundred volunteer formations, with the number of volunteers who joined the territorial defense in the first days of the full-scale war amounting to around 100,000 individuals. However, fighters who, for various reasons, were unable to sign contracts with the Armed Forces of Ukraine could not obtain combatant status and, therefore, were ineligible for state assistance and the benefits associated with this status.

According to the changes adopted by the Cabinet of Ministers to Resolution No. 413 dated August 20, 2014, combatant status can be obtained by civilians who, from February 24 to March 25, 2022, independently or as part of volunteer formations, along with security agencies, defended Ukraine from Russian aggressors directly in combat zones. The decision to grant combatant status to volunteers will be made by an interdepartmental commission established by the Ministry for Veterans Affairs. In order to obtain combatant status, a volunteer must submit a certificate from their commander regarding their participation in combat operations or notarized testimonies from several fellow brothers, including the commander of the unit where the volunteer served.

Chart 3. Value of Reform Index components and number of events

Reform Index from VoxUkraine aims to provide a comprehensive assessment of reform efforts by Ukraine’s authorities. The Index is based on expert assessments of changes in the regulatory environment in six areas: Governance, Public Finance, Monetary system, Business Environment, Energy, Human Capital.

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