On 22 November 2017 the Cabinet of Ministers of Ukraine approved the corporatization process of the SE “NPC “Ukrenergo” which is to convert it in a private-joint stock company with 100% state-owned shares.
«The Government has made a fateful decision which we have been pursuing during a long period of time. The decision brings us closer to the real changes at the electricity market in order to convert it into a transparent mechanism operating on the competitive basis and clear condiditons , – commented Vsevolod Kovalchuk, CEO at Ukrenergo.- I would also like to dispel gossips and doubts around the Ukrenergo corporatization issue. Given the legal norms of the Laws of Ukraine “On electricity market” and “On joint stock companies”, the transmission system operator may function only as the private joint stock company. However, it has nothing in common with transfer of Ukrenergo or its assets to private ownership”.
Transformation of Ukrenergo into joint stock company is one of the provisions of the Law of Ukraine “On electricity market” (p.3, ar.31). The Law stipulates that the state owns 100% of shares in the transmission system operator authorized capital; the shares may not subject to privatization or alienation In any other way.
The Law of Ukraine “On joint stock companies” distinguishes the public (PJSC) and private (PrJSC) ones which do not differ a lot within form and management, control and disclosure of information. The placement of shares serves as a main difference. Shares of the private joint company (PrJSC) can NOT be purchased or sold at the stock exchange. Whereas the shares of the public joint stock company (PJSC) can be purchased and sold at the stock exchange; also the company must meet the listing requirements of the stock exchange proceeding to do so for as long as it is on the exchange.
Next steps of the Ukrenergo corporatization process include Company asset inventory, valuation of property and, actually, share issue with the following transfer into the state ownership.
It should be mentioned as well the Ukrenergo corporatization is one of the key conditions of a successful TSO certification along with unbundling and transfer of ownership of grid. TSO certification is not the requirement of the mentioned Law “On electricity market”, but a vital aspect to ensure the Ukrenergo independence and its compliance with the requirements of the Third EU Energy package as well as transformation of the Company into an effective and transparent state enterprise of the Europeans model.