Features and prospects of reforming the energy market in Ukraine

Abstract

The article examines the current state, features of functioning and promising directions of reforming the natural gas market in Ukraine in the context of the transformation of the energy sector, military challenges and deepening European integration processes. The main prerequisites for the development of a competitive gas market are revealed and the factors that influence its efficiency, stability, transparency and ability to meet the needs of consumers and the national economy are identified. Particular attention is paid to the need to form a balanced model of market functioning, which will combine market mechanisms, effective state regulation, consumer protection and ensuring the energy security of Ukraine. The features of reforming the gas sector are analyzed, related to market liberalization, development of competition, improvement of the pricing system, functioning of gas transportation and gas distribution infrastructure, as well as adaptation of national legislation to the requirements of European energy legislation. The main problems that hinder the full development of the competitive environment are identified, including insufficient predictability of regulatory policy, significant state influence on certain market segments, accumulation of financial imbalances, risks of debt and the need to improve mechanisms for financing production and technological costs of natural gas. The article examines the features of the application of mechanisms of state intervention in the functioning of the natural gas market, in particular, the imposition of special obligations on individual market entities, price regulation for certain categories of consumers and the establishment of conditions for providing socially significant needs with natural gas. The need for a gradual transition from the situational application of administrative instruments to the use of transparent, economically justified and predictable mechanisms of regulatory influence that will ensure a balance of interests of the state, business entities and consumers is substantiated. Special attention is paid to the problem of production and technological losses and costs of natural gas and their impact on the economy of gas distribution system operators and the formation of tariffs for distribution services. The feasibility of further improving the mechanisms for financing gas, necessary to meet technological needs, as well as stimulating gas infrastructure operators to reduce unproductive resource costs by modernizing equipment, optimizing operating modes, and implementing modern monitoring and accounting systems, has been determined. Prospective directions for further reforming the natural gas market of Ukraine have been substantiated, which include the development of a competitive environment, increasing the transparency of pricing, improving tariff regulation mechanisms, developing exchange trading, digitalizing monitoring processes and analyzing market conditions, increasing the institutional capacity of state bodies, and harmonizing the rules for the functioning of the gas market with European standards. The implementation of these directions should contribute to the formation of an effective, competitive, and energy-sustainable natural gas market capable of adapting to modern economic, security, and geopolitical challenges. The practical value of the study lies in identifying and systematizing key problems in the functioning of the natural gas market of Ukraine and substantiating the directions for its further reform. The results obtained can be used in the formation and implementation of state policy in the gas sector, improving legal and regulatory support, developing mechanisms to increase the efficiency of market participants, as well as in further scientific research into the problems of development, liberalization and integration of the natural gas market of Ukraine into the European energy space.