Energy market reform has been and continues to be a core area of expertise for MJMEnergy and it associates with its expertise gained in the U.K. and the EU, in high demand throughout the world. In particular MJMEnergy has developed a series of management processes and training packages that facilitate gas market reform for clients in the following areas;
- Development of relevant legislation and licences.
- Development of roadmaps for unbundling.
- Development of network codes.
- Change management with incumbent monopolies.
As part of Ukraine’s commitment towards the EU’s wider Energy Community initiative it was required to ensure that its market structure conformed with the EU 3rd Energy Package. In particular this included two regulatory acts (Directive 2009/73/EC concerning common rules for the internal market in natural gas and Regulation 715/209 on conditions for access to the natural gas transmission networks) which were to be implemented by the Government of Ukraine (GoU) by the beginning of 2015.
Naftogaz, the national oil and gas company of Ukraine, had previously prepared a draft restructuring concept and implementation plan which it called: “Restructuring NJSC Naftogaz of Ukraine’s Natural Gas Business (pessimistic scenario with regard to the price of Russian gas)” This report contained a review of the Ukrainian gas market with relation to world gas markets; an overview of the EU’s 3rd package; an analysis of Naftogaz’ current structure; a series of recommendations on how to change the structure of the businesses; and financial forecasts of the unbundled businesses.
Overview of the project
Therefore in the light of these regulatory requirements the World Bank funded a gas market reform programme with , MJMEnergy providing technical, commercial and operational support to a gas market reform team led by Energy Consulting Associates Ltd. (ECA).
The Project Team concluded this aspect of the project by delivering a series of presentations and associated reports to the deputy prime ministers office and the energy ministry that covered the principles, process and challenges associated with gas market reform.