The Ministry of Finance has approved Ownership policy of NPC Ukrenergo to bring the Company’s management system in line with the Guidelines of the Organization for Economic Cooperation and Development (OECD) on corporate governance of state-owned enterprises.
“Ownership policy defines the main goals and priorities of the shareholder (i.e., the state) in the ownership of the Company, as well as management principles and expected results of the operations. It will improve cooperation between Ukrenergo and the shareholder and provide for objective evaluation of our Company’s activities. This is the path that the Ukrainian public sector must overcome. We are sincerely grateful for the joint efforts of the teams of the Ministry of Finance, the Ministry of Energy, and the Ministry of Economy”, noted Maksym Yurkov, member of the Management Board of NPC Ukrenergo.
Ukrenergo’s Ownership policy stipulates that the main expected results of the Company’s activities are ensuring the operation of the integrated power system (IPS) of Ukraine, developing and modernizing trunkpower grids, implementing the plan of integration of the IPS of Ukraine into ENTSO-E, etc.
In addition, the document indicates that the state, as a business entity, will ensure compliance with the general principles of company management: the decisions of the managing entity regarding the Company shall be reasonable and comply with the principles of impartiality, integrity and transparency; the principle of operational autonomy shall be observed; and effective internal control, audit, compliance, etc., shall be ensured.
Please note that in November, 2018 NPC Ukrenergo by the decision of the Cabinet of Ministers was transferred to management of the Ministry of Finance. In February 2019, the Company’s entire property complex was also transferred to the Ministry of Finance effectively completing the process of unbundling and ensuring the independence of the transmission system operator from electricity generation and supply in accordance with the current Law of Ukraine “On Electricity Market”.
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