Major decisions of Parliament: the uncertainty of the electricity market and a step health care reform

The movement towards energy efficiency

April 4, the deputies adopted in the first reading the draft law № 4941-d “On energy efficiency of buildings”. When considering in November of last year, the bill was not adopted as a basis and sent on completion to the relevant Committee.

The document stipulates the introduction of mandatory energy efficiency certification for construction sites with medium or significant class effects, as well as for buildings with a total heated area of over 250 square meters, in which are located the organs of state power or bodies of local self-government and municipal organizations, in the case of reconstruction or modernisation of such buildings. The obligatory certification of energy efficiency of buildings by municipal and state institutions is possible only if in the corresponding budget should have funds for conducting their energy audit. In addition, mandatory certification of energy efficiency of buildings is provided in the case of entities of measures to improve energy efficiency, provided they receive government support for this purpose.

The provisions on certification does not apply to industrial buildings and premises for agricultural purposes low level of energy consumption, buildings for religious worship, cultural heritage sites, temporary structures and detached buildings with a heated area of less than 50 sq. m.

“This is the bill which will begin with large-scale insulation of buildings due to a variety of financial instruments,” – said Alyona Babak, Deputy Chairman of the Verkhovna Rada Committee on construction, urban development, housing and communal services.

According to the Ministry of regional development, in pursuance of the provisions of bill No. 4941-d, work has begun on 11 projects of normative acts jointly with the European Bank for reconstruction and development, effective regulation Office (BRDO), the Confederation of builders of Ukraine, the relevant experts and the public.

The inhibition of the creation of the electricity market

On 5 April the Verkhovna Rada after two hours of debate in the hall was sent for a repeated second reading bill No. 4493 “On electricity market”. It was adopted at first reading on 22 September 2016. Second reading submitted 1135 edits. “Unfortunately, a lot of amendments, which created the backbone of this law was rejected,” – said before the vote, MP Leo Pidlisetskiy representing the document. This unbalance the document, therefore the Rapporteur proposes a project. “I would like to come back to those edits, which were removed once their vote, so we can pass a law that meets the interests of consumers”, – he concluded.

The draft law supplements the list of participants of the market a new player – trader, which can be any business entity engaged in the purchase of electricity for the sole purpose of its resale (excluding sales to the consumer)

“This bill is introducing market relations between all participants in the electricity market. The consumer gets the right of the subject, whereas now he can only get what he provides one supplier – power companies, and the price is determined opaque NKREKU, – said L. Pidlisetskiy. – The bill reduces the powers of the national Commission, leaving the Commission only from the regulation of natural monopolies (transmission system and distribution). Everything else will be market”.

The draft law supplements the list of participants of the market a new player – trader, which can be any business entity engaged in the purchase of electricity for the sole purpose of its resale (excluding sales to the consumer). The existence of traders should positively affect the liquidity of the electricity market and help to limit price fluctuations.

The document provides for the implementation of the requirements of the Third EU energy package on legal and organizational separation of the distribution and transmission of electricity from other types of activities, which is a prerequisite for the introduction of economic competition in the electricity market. The bill also introduced a new support mechanism for electricity producers at the “green” tariff replacement Fund resolution of the imbalance value. Provides that the entire amount of electricity produced from renewable energy sources, buys guaranteed buyer. While its costs associated with such purchase, kompensiruet the transmission operator.

Meanwhile, Deputy Prime Minister-Minister Vladimir Kistion said that the absence of the law “On electricity market” does not allow the generating companies, thermal power plants, which use scarce anthracite coal group, to conclude contracts for the supply of fuel to Ukraine, in order to have time to deliver enough to the beginning of the heating period 2017-2018.

The national Commission, carrying out state regulation in the energy and utilities, with the purpose of timely preparation for the implementation of the Third energy package in the electricity sector in accordance with the draft Law “On electricity market”, 29 Oct 2015 adopted schedule for implementation of new market model of electrical energy. Information about the current status of implementation of the Plan posted on the website of the national Commission.

Accelerate the reform of the health system

6 APR Rada adopted the bill №2309а-d “On amendments to some legislative acts of Ukraine concerning improvement of legislation on health care”. It clarified the peculiarities of the organizational-legal status of health establishments, their classification, requirements to the constituent documents and management. Simplified procedure of reorganization of health care institutions from state and public institutions in a state-owned or municipal non-commercial enterprise. Establishes procedures for renewal of licenses and other permits.

Provides a number of incentives, including financial, for the reorganization of health care institutions. Defines features of the conclusion of labour contracts with heads of agencies and clarifies possible sources of funding. Provides that no institution used the money this year will not be confiscated. Such misuse of funds cannot be a reason to reduce funding in the next budget period.

Establishes that contracts for medical services will be in accordance with the special order established by the government, which will replace the public procurement procedure, which, because of its complexity and duration can lead to disruption in the provision of medical services.

See also: What medical reform of Ukrainians expect this year

If health care institutions provide medical care for secondary (specialized) and tertiary (highly specialized) level, the formation of Supervisory boards with mandatory participation of members of the public. Supervisory boards consider the issues of rights and safety of patients, compliance in the implementation of medical service, financial and economic activities of the enterprises.

In General, the law aims to reform the health system with the aim of creating a network of state and municipal healthcare institutions with a sufficient level of independence to provide effective and timely medical support of the population. In accordance with article 49 of the Constitution of Ukraine the existing network of public and municipal health institutions may not be reduced, and state and municipal healthcare institutions will remain in the relevant property and are not subject to privatization.

New government projects

Under health care reform, the Cabinet approved a package of new bills aimed at changing the system of financing the healthcare industry, and referred them to Parliament. The government noted that in the case of the adoption of these laws will make the process of reforming the healthcare industry is unstoppable and will provide additional protection to veterans of ATO. If they are not adopted at the current session, the reform will be delayed indefinitely due to the country’s entry into the election campaign 2019-2020

Package, submitted to Parliament, contains four draft laws: “On state financial guarantees for providing medical services and medicines”, “On amendments to the Budget code of Ukraine regarding the costs of primary health care”, Changes in the basic legislation of Ukraine on health care (articles 3, 8 and 35), “additional state financial guarantees for the provision of medical services and medicines to persons who defend the independence, sovereignty and territorial integrity of Ukraine in the antiterrorist operation and ensure its implementation”.

It is expected that the state will provide the full cost of services, emergency care, palliative care, primary care

The most important systemic changes inherent in the first document. Its purpose is the establishment of a mechanism for financing health care services and medicines at the expense of budget funds through the state solidarity health insurance. The list of medical services and medicines, the cost of which is covered by insurance, fixed at the level of the law in the state guaranteed package. Under this package the state will provide the full cost of services, emergency care, palliative care, primary care, and partially cover the cost of paid services in secondary and tertiary levels. The functions of insurer and a single customer for the centralized procurement of medical services, control over observance of conditions of contracts on medical services providers, will implement a new Central body of Executive power with special status – the national health service of Ukraine. It is assumed that the system is running in 2019.