KIEV, Jan. 2 – The law on the functioning of Ukraine's electricity market, which foresees the liberalization of the country's wholesale electricity market, took effect on January 1.

The law was passed in parliament on October 24, 2013; it was published the government's Uriadovy Kurier newspaper on December 18, 2013.

Some clauses of the law will take effect after January 1, 2014.

Before the law became effective, Ukraine had an energy market with a single buyer, while the new law foresees the introduction of a model of direct contracts, a market of contracts "for the next day" and a balancing market, which will enable imbalances in electricity production to be corrected. It also assumes the creation of a market of additional services for the purchase of flexible capacities.