Assessing Effectiveness of Law “On the Natural Gas Market”

The Verkhovna Rada Committee on Energy, Housing, and Utilities, as part of its oversight responsibilities and with the support of the Westminster Foundation for Democracy under the USAID RADA: Next Generation Program, conducted an in-depth analysis of the effectiveness and implementation of the Law of Ukraine “On the Natural Gas Market” (No. 329-VIII, April 9, 2015).

This law establishes the legal framework for the Ukrainian natural gas market, emphasizing free competition, consumer rights protection, and the security of natural gas supply. Additionally, it aims for the market's integration with the Energy Community member states' natural gas markets.

The analysis aimed to evaluate the law’s effectiveness, its impact on market participants, and the quality of natural gas services provided to consumers. The following key issues were examined:

• To what extent has the natural gas market reform achieved its goals of ensuring efficient market function, financial stability, consumer rights protection, and secure natural gas supplies? How has it contributed to Ukraine’s European integration goals?
• How effective has the implementation and enforcement of the law been in achieving energy security?
• What is the current state of government regulation of natural gas market participants?

The assessment utilized post-legislative scrutiny (PLS) methods developed by the Westminster Foundation for Democracy, drawing from the best practices of the UK Parliament. Surveys were distributed via Google Forms, tailored to different respondent categories. Respondents were divided into three groups: natural gas market participants, management and regulatory bodies, household consumers, and non-household consumers. The survey, conducted between December 11, 2023, and January 15, 2024, gathered responses from 431 participants.

To further assist the Verkhovna Rada Committee, USAID RADA: Next Generation Program experts prepared a report titled "Functioning of Natural Gas Markets in EU Member States," providing valuable insights into how EU markets operate, and helping inform future legislative efforts..