Energy Minister: Belarus, Russia strongly progressed in forming common energy market
A meeting of the Parliamentary Assembly Commission on Energy has been held recently, focusing on the discussion of the Union State programme envisaging the formation of a common market for electric energy and natural gas, and Belarus’ Energy Minister Viktor Karankevich highlighted the significant progress made in this direction
As noted by Mr. Karankevich, the project of a common market for electric energy and natural gas of the Union State has been prepared and agreed upon, “The draft interstate agreement on the formation of a common electric energy market has undergone domestic procedures. This document outlines the powers of public administration bodies, market participants and infrastructure organisations, as well as the principles of cross-border trade in electric energy. The rules of the electric energy market functioning will be adopted in the development of this agreement, and their preparation is in its final stage.”
The Energy Minister also explained that electric energy is planned to be traded through authorised legal entities, “On the Belarusian side, this is the Belenergo state production association. At the second stage, deeper integration is planned – taking into account co-ordinated actions with colleagues from the Russian Federation to form a common gas market and equalise gas price conditions. It involves expanding the list of market participants and developing a single technological process of operational dispatch management. In the future, this unified electric energy market will have to be synchronised with the work of the common electric energy market of the Eurasian Economic Union.”
The formation of a unified electricity trading market is aimed at organising a competitive and equitable environment where various tariff plans will be applied for consumers. In addition, it will contribute to further development of co-operation, renewal of generating capacities and attraction of additional investments in the industry.
Speaking of a common gas market, the Energy Minister noted that the price terms and parameters for the supply of Russian natural gas to Belarus in 2023-2025 had been determined at the level of the presidents of Belarus and Russia. “The gas price is quite comfortable for Belarus at this stage of the formation of the common gas market of the Union State. We share mutual understanding with our Russian colleagues on how to move forward in the framework of integration in the gas sector. Our main task now is to form agreed principles of functioning of the common gas market for subsequent convergence of price terms and business conditions for the two countries’ subjects, and also to ensure the implementation of these agreements,” Mr. Karankevich said.
