A recent study published in the Baltic Journal of Economic Studies explores the complex landscape of collective dominance in Ukraine’s electricity market, drawing parallels with European Union practices. Led by Kseniia Smyrnova, the research highlights the urgent need for reform in Ukraine’s energy sector, particularly in light of its obligations under international agreements.
The Anti-Monopoly Committee of Ukraine (AMCU) has been tasked with navigating the intricacies of market regulation, but the study indicates that its current approach may fall short of EU standards. “Our findings reveal that the AMCU’s regulation of the electricity market requires significant reform to align with EU competition law,” Smyrnova states. This alignment is crucial not only for legal compliance but also for fostering a competitive environment that could invigorate the construction sector, which heavily relies on stable and fair energy prices.
The research emphasizes the importance of transparent and non-discriminatory practices in the electricity market, as stipulated by Article 255 of the Association Agreement between Ukraine and the EU. These principles are essential for creating an equitable playing field where construction companies can operate effectively. The current regulatory framework, according to the study, lacks the necessary mechanisms to ensure fair competition, which could lead to inflated costs for construction projects and hinder economic growth.
Smyrnova’s work suggests that a shift in tariff and pricing policies is imperative. “By reforming the pricing mechanisms and promoting competition, we can ensure that energy costs remain manageable for construction firms, ultimately benefiting the broader economy,” she explains. The implications are significant; a more competitive electricity market could lead to reduced operational costs for construction companies, enabling them to invest more in infrastructure projects and innovation.
As Ukraine continues to integrate its energy policies with those of the EU, the insights from this study could serve as a blueprint for future regulatory reforms. The potential for increased competition in the electricity sector not only promises to stabilize energy costs but also to enhance the overall investment climate in Ukraine. This could attract foreign investments in construction and infrastructure, which are vital for the country’s post-conflict recovery and growth.
The study underscores the need for a comprehensive understanding of collective dominance and its enforcement in the electricity market, a topic that has not been previously addressed in Ukraine. As the AMCU moves forward, incorporating these findings could lead to a more robust and competitive energy market that supports the construction sector and the economy at large.
For more information about Kseniia Smyrnova’s work, you can visit lead_author_affiliation.
