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  • The NEURC has approved the Program of Ukrenergo Compliance with Requirements for Unbundling and Independence

    The NEURC has approved the Compliance Program of NPC Ukrenergo, which establishes measures to avoid discrimination by the Transmission System Operator (TSO) and responsibilities of the Company’s employees to achieve this goal. According to the Law of Ukraine “On the Electricity Market” (Article 364), this document determines the measures to monitor the TSO compliance with requirements for unbundling and independence and is a prerequisite for certification of Ukrenergo as a European-type System Operator according to the ISO (Independent System Operator) model.

    The adopted document determines measures to achieve the following goals:

    • TSO compliance with requirements for unbundling of production, distribution, supply of electricity and trading operation;
    • ensuring TSO independence from the owner of the transmission system in performing its functions under the laws and observing transparent and non-discriminatory relations between them;
    • ensuring TSO independence from other market participants in decision-making;
    • observing the requirements for TSO non-discriminatory actions towards participants of the electricity market, etc.

    The Compliance Program also establishes measures to monitor the non-discriminatory operation of the Transmission System Operator. The implementation of the Compliance Program shall be monitored by the Compliance Officer reporting to the Regulator. The Program also establishes the powers, functions and responsibilities of the Compliance Officer.

    It will be recalled that the certification of the Transmission System Operator is a requirement of the Law of Ukraine “On the Electricity Market” and the European Union’s Third Energy Package. In April 2021, the Verkhovna Rada of Ukraine adopted Law 1396-IX, which enabled the certification of NPC Ukrenergo as a European-type TSO according to the ISO model. The Law came into force on 15 May 2021, and on 17 May NPC Ukrenergo applied for the certification to NEURC.

    In early June 2021, the Regulator adopted a preliminary decision on the certification of NPC Ukrenergo as a European-type TSO according to the ISO model. The Energy Community Secretariat is in the process of preparing its opinion, which should confirm the compliance of NPC Ukrenergo with the European legislation. After receiving the opinion, NEURC will be able to adopt a final decision on the certification of NPC Ukrenergo.

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