NPC Ukrenergo requests the District Administrative Court of Kyiv to recognise the inaction of the Ministry of Energy and Environmental Protection as unlawful that critically delays the approval of the Company’s 2020 investment programme, and oblige the Ministry to approve this document as soon as possible. Ukrenergo submitted the investment programme to the Ministry of Energy and Environmental Protection for its consideration on September 25, 2019.
The severity of the situation is that without the approval of the investment programme by the branch ministry, Ukrenergo cannot submit it for approval to NEURC. At the same time, if 2020 investment programme is not approved by the end of the current year, from January 1, 2020, the possibility for implementation of all projects of construction and reconstruction of the networks, settlement of payments with counterparty contractors, including within the framework of international investment projects, will be automatically blocked.
It should be noted that the investment programme is developed by NPC Ukrenergo and approved by the Regulator annually in accordance with the procedure for forming investment programmes approved by the resolution of NEURC of 30.06.2015 No. 1972, as well as undergoes an open discussion. Subsequently, the draft document is submitted for approval by the Ministry of Energy and Environmental Protection in accordance with the Law of Ukraine On the Electricity Market, and ensures the formation and implementation of state policy in the power complex and approves the investment programmes of the transmission system operator and distribution system operators.
The 2020 draft investment programme developed by NPC Ukrenergo was openly discussed on September 23, 2019, and received approvals of 22 regional state administrations recorded in the relevant minutes of the event. On September 25, the draft investment programme was submitted to the Ministry of Energy and Environmental Protection for approval. After that, NPC Ukrenergo has received no comments or approval on this document. In this regard, letters have been sent to the Ministry of Energy and Environmental Protection with request to accelerate approval of the draft investment programme. However, according to the legislation, the term of consideration of such type of documents shall not exceed one month from the date of receipt.
It should be noted that this is not the first lawsuit of Ukrenergo against the Ministry of Energy and Environmental Protection. For example, on July 15, 2019, the District Administrative Court of Kyiv upheld the Company’s claim to the Ministry of Energy and Coal Industry and recognised its inaction as unlawful to block the payment orders for the NPC Ukrenergo counterparties, which implemented a number of international investment projects, in particular, the development of software for the balancing and ancillary service markets – Market management system (MMS).