The Law of Ukraine On Energy Industry
Date of Entry into Force: November 20, 1997
The Law regulates relations that arise in connection with production, transfer, supply and use of energy, state supervision over safe fulfillment of works at the energy industry objects regardless of ownership forms, safe operation of energy equipment and state supervision over the consumption regimes of electric and heat energy.
The objects of energy industry may be under different ownership forms. The list of objects of energy industry which shall not be subject to privatization is approved by the Verkhovna Rada of Ukraine upon submission of the Cabinet of Ministers of Ukraine. Privatization of objects of energy industry is performed in compliance with the legislation of Ukraine on privatization. The property that ensures integrity of the unified energy system of Ukraine and centralized dispatcher (operative and technological) management, main and interstate electric networks, as well as property of scientific institutions of national significance shall not be subject to privatization.
State supervision in the field of energy industry is performed by the State Inspection on operation of electric stations and networks and the State Inspection on energy supervision over electric and heat energy consumption regimes according to the procedure set by the Cabinet of Ministers of Ukraine and other bodies defined by the legislation of Ukraine.
State regulation of activity in the field of energy industry is performed by: · granting licenses for conducting some types of activity in the field of energy industry; · forming tariff policy; · establishment of the procedure for conducting control over the activity of subjects of energy industry, other participants of the wholesale market of electric energy; · setting responsibility for violation by them of conditions and rules of conducting activity at the wholesale market of electric energy.
The body that performs state regulation in the field of energy industry is the National Commission for Regulation of Electric Power Industry in Ukraine. This Commission issues special permit (license) for conducting activity on production, transfer and supply of electric energy. The license is issued separately for each type of activity.
Wholesale tariffs for electric energy are formed at the wholesale market of electric energy of Ukraine according to the agreement. Wholesale tariffs may include expenses for joint financing of development of non-traditional sources of electric energy. For financing of building of wind electric stations, according to the Complex program on building of wind electric stations a special purpose extra charge is set in the amount of 0.75 per cent to the current tariff for the electric energy that is sold by the producers of electric energy at the wholesale market of electric energy of Ukraine. The enterprises that supply electric energy through the networks, which are not owned by them, shall buy electric energy at the wholesale market of electric energy of Ukraine and pay for the use of local electric networks.
Retail price for electric energy is formed by the energy suppliers according to conditions and rules of conducting entrepreneurial activity on supply of electric energy. Tariffs for transfer and supply of electric energy through the local electric networks are regulated by the National Commission for Regulation of Electric Power Industry of Ukraine.
Design and building (new building, extension, reconstruction and technical re-equipment) of energy industry objects are performed on the basis of the legislation on building. Equipment of energy industry objects is performed on tender basis.
A special access regime is set at the energy industry objects. Especially important energy industry objects are protected by the departmental military guards in cooperation with the specialized subdivisions of other departments. The staff of the departmental military guards of energy industry objects is provided with fire-arms and special devices for selfdefense.
Energy industry enterprises shall observe the requirements of the legislation on the environmental protection. In case of violation of the legislation on the environmental protection decision about limitation, temporary prohibition (stop) or suspension of activity of electric stations, main and interstate electric networks is adopted by the Cabinet of Ministers of Ukraine.
Strikes at the energy industry enterprises are prohibited in the cases when they may cause violation of the integrity of the unified energy system of Ukraine or heat supply in autumn and winter period.
The Law covers the rights, duties and responsibility of electric energy suppliers and consumers of electric energy.