The Wholesale Electricity Market (WEM) — it is an association of energy companies on a contractual basis which produce, distribute, supply, buy and sell electricity.
The Wholesale Electricity Market (WEM) in accordance with the Law of Ukraine "About Electricity" operates based on the Agreement between its members which defines conditions, activities, rights, duties and responsibilities of all participants as well as the order of activity, market infrastructure and authorities. Economic and financial mechanisms of operation activities are regulated by the Rules of the Wholesale Electricity Market and by the relevant instructions to the Agreement.
Operation activities of WEM is ensured by the following structures:
- Board of WEM;
- Commercial Operator of WEM.
Board of WEM - it is a combination of voting and non-voting directors with certain powers endowed under the Agreement which are elected on the general meeting by members of the Agreement. The commercial operator of the WEM is SE "Energorynok" which sells all produced electricity in Ukraine and acts as the manager of the payment system and as the manager of WEM funds.
The organization of the wholesale market is based on the self-regulation of its participants' activities including through participation in the development of rules for the functioning of the wholesale market and the formation of a permanent monitoring system for the compliance with these rules.
The board of the market based on the special procedure accepts new participants of the Agreement to WEM's members.
In order to produce, buy or sell electricity in Ukraine, any company should obtain the status of the WEM member and should sign the relevant electricity Agreements with its participants. Before receiving the membership it is needed to obtain a license for the electricity generation in Ukraine.
List of the required documents for the receiving of the WEM member status:
• NERC license for the electricity production.
• Certificate of State registration of the enterprise.
• Statute of the enterprise.
• VAT Certificate.
• Certificate from NERC about the lack debt for the license fee.
• Recommendations of any WEM's active member.
• Application for membership to the WEM in accordance with he established sample.
• Brief description about the applicant's activities.
• Data about the annual volume of operations on WEM.
• Protocol about the order for the data exchange with WEM.
• Samples of managers signatures (responsible persons) who have a right to sign documents which will be issued during the operating period on WEM.