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.
This reform will have two phases:
Phase І: creating an independent Supervisory Board and the audit, nomination and reward committees;
Phase ІІ: the Company’s corporatization and transformation into a public joint-stock company with unalienable stock.
The Supervisory Board would represent interests of the state and be responsible for general oversight of the Company, which includes determination of the main purpose of Ukrenergo’s activity and approval of the strategy of achieving this purpose. In the course of controlling the Company’s performance and financial results, the Supervisory Board would monitor implementation status of the Company’s strategy and plans. The scope of the Supervisory Board’s competence would also include determining KPIs (Key Performance Indicators) for the management and controlling their attainment, and facilitating the functioning of relevant control systems (risk management, financial and operational control, and conformance of these systems with law and applicable standards).
The implementation of this reform would result in the increasing trust and legitimacy in our relations with international business partners, decreasing political influence and increasing transparency of the Company’s activity.
Presently, Ukrenergo goes through the first phase, and soon we will have the Supervisory Board and the aforementioned committees among our administrative bodies. Currently, we are working on determining the scope of powers and functions of these bodies and the procedure of appointing/electing their members.