decor

NEURC Brought Secondary Legislation in Line with the Law on “Green” Transformation

On 24 January 2024, the NEURC adopted the Resolution “On Amendments to Certain Resolutions of the National Energy and Utilities Regulatory Commission (NEURC)” (the “Resolution”) to bring the secondary legislation in line with the Law of Ukraine “On Amendments to Certain Laws of Ukraine on Restoration and Green Transformation of the Energy System of Ukraine” No. 3220-IX dated 30 June 2023 (the “Law on “Green” Transformation”).

On Approval of Regulatory Acts Governing the Activities of the Guaranteed Buyer (GB) and the Purchase of Electricity at the Feed-in Tariff (FIT)

These amendments mean that SE “Guaranteed Buyer” and the members of the balancing group of the GB are obliged to bring the agreement for the purchase and sale of electricity under the FIT in line with the model agreement for the purchase and sale of electricity under the FIT approved by the NEURC no later than the date of entry into force of the relevant provisions of the Law on “Green” Transformation (namely, by 26 January 2024) and conclude an agreement on participation in the balancing group of the GB.

If a member of the balancing group of the GB fails to update the mentioned agreements, the GB will not take into account the forecast data of electricity supply provided by such a member of the balancing group of the GB, the commercial metering administrator will not take into account the actual data of electricity supply by the electrical installations of such a member of the balancing group of the GB, and the GB will not buy the electricity produced by such a member.

Challenges

  • the Procedure for the purchase of electricity generated from renewable energy sources (RES) by the GB to determine the cost of the service to ensure an increase in the share of electricity production from RES and to determine the cost of the service under the market premium mechanism
  • the Model agreement for the purchase and sale of electricity under the FIT
  • the Model agreement for the provision of services to ensure an increase in the share of electricity production from RES

NEURC Resolution No. 307 dated 14 March 2018

The Resolution approves amendments to the Market Rules approved by NEURC Resolution No. 307 dated 14 March 2018, which relate to the part of determining the volume of unreleased electricity, i.e. the difference between the volume of electricity that should have been supplied and the volume of electricity actually received by the consumer.

The Resolution approves amendments to the Market Rules approved by NEURC Resolution No. 307 dated 14 March 2018, which relate to the part of determining the volume of unreleased electricity, i.e. the difference between the volume of electricity that should have been supplied and the volume of electricity actually received by the consumer.

The most important change is an additional option to apply for the registration by an authorized representative of a non-resident of Ukraine in Excel(xls or xlsx) format through the electronic Services Portal of the Ministry of Economy (https://my.gov.ua/). Such electronic registrations must include a qualified electronic signature of the authorized representative in compliance with the requirements of the Laws of Ukraine “On Electronic Documents and Electronic Document Management” and “On Electronic Trust Services”.

Lasting and Measurable Impact through IT Solutions

Chairman of the Regulator encourages all market participants to complete the registration by the new deadline if they are required to do so by law. Apparently, the deadline is unlikely to be postponed further, so if a market player carries out transactions involving wholesale energy products, it should comply with the registration requirements by April 1, 2024 to avoid certain negative consequences.

Challenges

  1. the Procedure for the purchase of electricity generated from renewable energy sources (RES) by the GB
  2. the Model agreement for the purchase and sale of electricity under the FIT
  3. the Model agreement for the provision of services to ensure an increase in the share of electricity production from RES
  4. determine the cost of the service to ensure an increase in the share of electricity production from RES and to determine the cost of the service under the market premium mechanism

In his comments posted on the Regulator’s website, the Chairman of the Regulator encourages all market participants to complete the registration by the new deadline if they are required to do so by law. Apparently, the deadline is unlikely to be postponed further, so if a market player carries out transactions involving wholesale energy products, it should comply with the registration requirements by April 1, 2024 to avoid certain negative consequences.

Registration requirements by April 1, 2024

Since the beginning of the Russian full-scale invasion, export logistics have emerged as a critical concern for Ukraine. “It is difficult to overestimate [the war risk insurance mechanism’s] significance for securing a steady export of food and other critical supplies from Ukraine to the rest of the world [in times of war] through Ukraine’s most convenient but extremely vulnerable route along the Black Sea,”.

According to Asters, the new mechanism, approved by the Ukrainian government, was formalized by a Framework Reimbursement Agreement signed by the Ukrainian Export Credit Agency with Marsh Limited as arranger, Ascot Underwriting Limited as lead underwriter, and a group of underwriters acting through Lloyd’s of London.

The mechanism involves placing relevant funds in accounts at Ukrainian state banks – Ukrgasbank and Ukreximbank – “enabling these banks to issue corresponding irrevocable letters of credit, each confirmed by DZ Bank AG. This provides shipowners and vessel charterers with cover for the transport of goods through the Black Sea and supports the agreed reimbursement of underwriters in the event of payment of claims,” Asters reported.

The mechanism involves placing relevant funds in accounts at Ukrainian state banks – Ukrgasbank and Ukreximbank – “enabling these banks to issue corresponding irrevocable letters of credit, each confirmed by DZ Bank AG. This provides shipowners and vessel charterers with cover for the transport of goods through the Black Sea and supports the agreed reimbursement of underwriters in the event of payment of claims,” Asters reported.


Kyiv (also spelled Kiev)[a] is the capital and most populous city of Ukraine. It is in north-central Ukraine along the Dnieper River. As of 1 January 2022, its population was 2,952,301,[2] making Kyiv the seventh-most populous city in Europe.[11] Kyiv is an important industrial, scientific, educational, and cultural center in Eastern Europe. It is home to many high-tech industries, higher education institutions, and historical landmarks. The city has an extensive system of public transport and infrastructure, including the Kyiv Metro.

The city’s name is said to derive from the name of Kyi, one of its four legendary founders. During its history, Kyiv, one of the oldest cities in Eastern Europe, passed through several stages of prominence and obscurity. The city probably existed as a commercial center as early as the 5th century. A Slavic settlement on the great trade route between Scandinavia and Constantinople, Kyiv was a tributary of the Khazars,[12] until its capture by the Varangians (Vikings) in the mid-9th century. Under Varangian rule, the city became a capital of Kievan Rus’, the first East Slavic state. Completely destroyed during the Mongol invasions in 1240, the city lost most of its influence for the centuries to come. Coming under Lithuania, then Poland and then Russia, the city would grow from a frontier market into an important centre of Orthodox learning in the sixteenth century, and later of industry, commerce, and administration by the ninenteenth.[1]

The city prospered again during the Russian Empire’s Industrial Revolution in the late 19th century. In 1918, when the Ukrainian People’s Republic declared independence from the Russian Republic after the October Revolution there, Kyiv became its capital. From the end of the Ukrainian-Soviet and Polish-Soviet wars in 1921, Kyiv was a city of the Ukrainian SSR, and made its capital in 1934. The city suffered significant destruction during World War II but quickly recovered in the postwar years, remaining the Soviet Union‘s third-largest city.

Following the collapse of the Soviet Union and Ukrainian independence in 1991

Kyiv remained Ukraine’s capital and experienced a steady influx of ethnic Ukrainian migrants from other regions of the country.[13] During the country’s transformation to a market economy and electoral democracy, Kyiv has continued to be Ukraine’s largest and wealthiest city. Its armament-dependent industrial output fell after the Soviet collapse, adversely affecting science and technology, but new sectors of the economy such as services and finance facilitated Kyiv’s growth in salaries and investment, as well as providing continuous funding for the development of housing and urban infrastructure. Kyiv emerged as the most pro-Western region of Ukraine; parties advocating tighter integration with the European Union dominate during elections.

Kyiv (also spelled Kiev) is the capital and most populous city of Ukraine.

It is in north-central Ukraine along the Dnieper River. As of 1 January 2022, its population was 2,952,301,[2] making Kyiv the seventh-most populous city in Europe.[11] Kyiv is an important industrial, scientific, educational, and cultural center in Eastern Europe. It is home to many high-tech industries, higher education institutions, and historical landmarks. The city has an extensive system of public transport and infrastructure, including the Kyiv Metro.

Kyiv Pechersk Lavra

The city’s name is said to derive from the name of Kyi, one of its four legendary founders. During its history, Kyiv, one of the oldest cities in Eastern Europe, passed through several stages of prominence and obscurity. The city probably existed as a commercial center as early as the 5th century. A Slavic settlement on the great trade route between Scandinavia and Constantinople, Kyiv was a tributary of the Khazars,[12] until its capture by the Varangians (Vikings) in the mid-9th century. Under Varangian rule, the city became a capital of Kievan Rus’, the first East Slavic state. Completely destroyed during the Mongol invasions in 1240, the city lost most of its influence for the centuries to come. Coming under Lithuania, then Poland and then Russia, the city would grow from a frontier market into an important centre of Orthodox learning in the sixteenth century, and later of industry, commerce, and administration by the ninenteenth.[1]

House with Chimaeras

The city prospered again during the Russian Empire’s Industrial Revolution in the late 19th century. In 1918, when the Ukrainian People’s Republic declared independence from the Russian Republic after the October Revolution there, Kyiv became its capital. From the end of the Ukrainian-Soviet and Polish-Soviet wars in 1921, Kyiv was a city of the Ukrainian SSR, and made its capital in 1934. The city suffered significant destruction during World War II but quickly recovered in the postwar years, remaining the Soviet Union‘s third-largest city.

Independence Square
Following the collapse of the Soviet Union and Ukrainian independence in 1991

Kyiv remained Ukraine’s capital and experienced a steady influx of ethnic Ukrainian migrants from other regions of the country.[13] During the country’s transformation to a market economy and electoral democracy, Kyiv has continued to be Ukraine’s largest and wealthiest city. Its armament-dependent industrial output fell after the Soviet collapse, adversely affecting science and technology, but new sectors of the economy such as services and finance facilitated Kyiv’s growth in salaries and investment, as well as providing continuous funding for the development of housing and urban infrastructure. Kyiv emerged as the most pro-Western region of Ukraine; parties advocating tighter integration with the European Union dominate during elections.

Saint Sophia Cathedral

The traditional etymology, stemming from the Primary Chronicle, is that the name is a derivation of Kyi (Ukrainian: Кий, Russian: Кий,[c] rom.Ky or Kiy, the legendary eponymous founder of the city. According to Oleg Trubachyov‘s etymological dictionary from the Old East Slavic name *Kyjevŭ gordŭ (literally, “Kyi’s castle”, “Kyi’s gord“), from Proto-Slavic *kyjevъ,[18] This etymology has been questioned, for instance by Mykhailo Hrushevsky who called it an “etymological myth”, and meant that the names of the legendary founders are in turn based on place names. According to the Canadian Ukrainian linguist Jaroslav Rudnyckyj, the name can be connected to the Proto-Slavic root *kyjь, but should be interpreted as meaning ‘stick, pole’ as in its modern Ukrainian equivalent Кий. The name should in that case be interpreted as ‘palisaded settlement’.

decor

Contacts

  • phone number:

    380 (67) 223-01-05

  • address:

    Voznesensky Uzviz 10A off 306





    VOZNESENSKY UZVIZ 10A, OFF 306
    Kyiv, 04053
    Ukraine