Successful implementation of the corporate reform will become the foundation for further fundamental transformations in the energy sector in general and an example of implementation of corporate governance for other companies.
As a result of this reform, we will implement a model for separation of an electricity transmission system operator, allowing for Ukraine’s integration into European energy markets.
The goal of reforming Ukrenergo’s corporate governance is to ensure competent and unbiased control over the Company’s management by the state, organize unbundling in the electricity generation sector and facilitate the Company’s integration into ENTSO-E.
Ukrenergo has already completed two stages of the reform. The Company established an independent Supervisory Board, composed of representatives of the state and independent members based on the results of competitive selection and approved by the Cabinet of Ministers of Ukraine.
On July 29, 2019, the Ministry of Finance approved the Order to transform SE NPC Ukrenergo into a private joint-stock company (PrJSC), with 100% stock owned by the state. In addition, the Ministry of Finance approved the charter of PrJSC NPC Ukrenergo with authorised capital of 37.2 billion UAH.
In August 2019, Ukrenergo applied to the NEURC for certification as an independent transmission system operator. Ukrenergo’s certification is a requirement of the Law of Ukraine “On the Electricity Market” and Directive 2009/72/EC, whose implementation is a part of Ukraine’s international committments. Certification is also a prerequisite for obtaining a license to carry out electricity transmission in the new market.
The reform will result in increased trust and legitimacy in relations with international business partners, reduced political influence, and increased transparency of the Company’s activities.