summary of the case
| status: | closed by Ministerial Council Decision / complied after Art.91 MC Decision |
|---|---|
| registered: | ex officio 2021 |
The Regulation (EU) 1227/2011 of the European Parliament and of the Council on wholesale energy market integrity and transparency (REMIT Regulation) was incorporated in the Energy Community acquis communautaire by Decision 2018/10/MC-EnC of the Ministerial Council of the Energy Community 29 November 2018.
Article 1(1) of the Ministerial Council Decision 2018/10/MC-EnC requires the Contracting Parties to transpose the REMIT Regulation by 29 November 2019. In accordance with Article 1(2) of the Ministerial Council Decision 2018/10/MC-EnC, the Contracting Parties were under an obligation to implement the REMIT Regulation by 29 May 2020.
Article 1(3) of the Ministerial Council Decision 2018/10/MC-EnC requires the Contracting Parties to notify the Energy Community Secretariat of the measures transposing the Decision, and any subsequent changes made to those measures, within two weeks following the adoption of such measures. ln transposing this Decision Contracting Parties were obliged to task national regulatory authorities with the monitoring of and enforcing compliance with the Ministerial Council Decision.
Article 6 of the Treaty imposes upon the Parties the general obligation to take all appropriate measures, whether general or particular, to ensure fulfilment of the obligations arising out of the Treaty. Article 89 of the Treaty requires Parties to implement Decisions addressed to them in their domestic legal system within the period specified in the Decision.
The time limit for Ukraine to take measures necessary to comply with Article 1 of Decision 2018/10/MC-EnC as well as Articles 6 and 89 of the Treaty expired on 29 November 2019. Ukraine to date has not adopted the measures necessary to implement Decision 2018/10/MC-EnC.
procedural history
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26 March 2021: Reasoned Request
Case
On 26 March 2021, the Secretariat submitted a Reasoned Request to the Ministerial Council against Ukraine, which failed to transpose the Regulation (EU) No 1227/2011 by 29 November 2019 and failed to forthwith notify those measures to the Secretariat.
This Contracting Party failed to comply with Articles 6 and 89 of the Energy Community Treaty as well as Article 1 of Decision 2018/10/MC-EnC.
Procedure
Under the Dispute Settlement Rules as amended in October 2015 (PA 2015/04/MC-EnC), the Ministerial Council abolished the preliminary procedure in dispute settlement proceedings for non-transposition. Hence, the Secretariat is obliged to submit a Reasoned Request to the Ministerial Council directly, without performing a preliminary procedure.
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30 November 2021: Ministerial Council Decision on failure
Steps taken
On 30 November, the Ministerial Council took decision on the failure by Ukraine to comply with certain obligations under the Treaty. The Ministerial Council declared the existence of a breach by this Contracting Parties of its obligations to transpose the Regulation (EU) 1227/2011 by 29 November 2019 and to forthwith notify those measures to the Secretariat. This Contracting Party failed to comply with Articles 6 and 89 of the Energy Community Treaty as well as Article 1 of Decision 2018/10/MC-EnC.
In Article 2 of the Decision, the ministers urge Ukraine to take all appropriate measures to rectify the breaches identified in Article 1 and ensure compliance with Energy Community law, by July 2022.
Procedure
Ukraine asked to report to the Secretariat and the Permanent High Level Group about the measures taken. The ministers invited the Secretariat to initiate procedures under Article 92 of the Treaty if the breaches are not rectified.
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2 July 2023: Compliance with Ministerial Council Decision
With the entry into force on 2 July 2023 of the Law of Ukraine "On Amendments to some laws of Ukraine regarding the prevention of abuse in the wholesale energy markets" adopted June 10, 2023 No. 3141-IX, the Regulation (EU) No 1227/2011 on wholesale energy market integrity and transparency has been transposed, and Ukraine ensured compliance with the Ministerial Council decision.