On 23 November 2016, the Ukrainian President signed the
long-awaited Law of Ukraine On National Energy and Utilities
Commission of Ukraine No. 1540-VIII of 22 September 2016 (the Law
on Regulator). It was officially published on 25 November 2016 and
entered into force on 26 November 2017, except for provisions on
the Regulator’s financing, which will enter into force
starting from 1 January 2017.
The Law on Regulator for the first time in Ukrainian history
offers a model of independent regulator in accordance with European
practices. According to the Law on Regulator, the Regulator
regulates, monitors and controls business entities in the energy
and utilities spheres, in particular:
In the energy sector:
Production, transmission, distribution, supply of
Transportation, distribution, storage, LNG services, supply of
Transpiration of oil, oil products and other substances by
In the utilities sector:
Production, transportation, distribution and supply of heat
(above amounts provided in licensing conditions);
Water supply and water sewerage (above amounts provided in
Processing and burial of municipal wastes (above amounts
provided in licensing conditions).
In the aforementioned spheres, the Regulator will be authorized
to (within limits envisaged by the law):
Control business entities and impose sanctions for
Other functions as provided by laws.
All current members of the Regulator shall leave their positions
within 18 months after the Law on Regulator has entered into
Concluding provisions of the Law on Regulator also resolve the
issues related to the discrepancy between the Law of Ukraine On
Natural Gas Market and Law of Ukraine On Licensing Types of
Business Activities by introduction of the respective changes to
Law of Ukraine On Licensing Types of Business Activities, which
will enable the Regulator to approve licensing conditions for gas
suppliers and start issuing respective licenses as envisaged by the
Law of Ukraine On Natural Gas Market.
Furthermore, the Law on Regulator introduces licensing for
processing and the burial of municipal wastes in volumes which
exceed thresholds established in respective licensing conditions to
be approved by the Regulator. The Regulator will issue the
respective licenses and control the license holders’
compliance with them.
It is expected that the entry into force of the Law on Regulator
will unlock other legislative initiatives, such as stimulating
tariff for heat from biomass or reformation of waste processing and
burial system in Ukraine.
The creation of an independent Regulator with all powers vested
by the Law on Regulator will create a more solid legal ground for
its members to elaborate and adopt new methodology for establishing
tariffs, in particular on the basis of a RAB approach, and to set
the respective tariffs. This should become a trigger for the
privatization of respective power facilities (distribution grids
and power plants), because potential investors will feel more
confident about their investment returns in these assets.
Dentons is the world's first polycentric global law firm. A
top 20 firm on the Acritas 2015 Global Elite Brand Index, the Firm
is committed to challenging the status quo in delivering consistent
and uncompromising quality and value in new and inventive ways.
Driven to provide clients a competitive edge, and connected to the
communities where its clients want to do business, Dentons knows
that understanding local cultures is crucial to successfully
completing a deal, resolving a dispute or solving a business
challenge. Now the world's largest law firm, Dentons'
global team builds agile, tailored solutions to meet the local,
national and global needs of private and public clients of any size
in more than 125 locations serving 50-plus countries.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
The seminar will take place on 31 March 2017. It aims to provide German companies with an overview of the latest developments in relation to insurance coverage, banking transactions and legal aspects of doing business with Iran.
The employment landscape is one that is constantly shifting. Employers who fail to keep up with the changes do so at their peril.
We are pleased to invite you to this seminar, designed to help in-house counsel and HR practitioners get to grips with key recent and forthcoming developments in employment, pensions and immigration law and practice and what they mean for your workforce.
Turkey's Energy Markets Regulatory Authority has determined procedures and principles for investments necessary to deliver natural gas to areas with populations over 20,000 which do not fall within licenses holders' current geographic license scopes.
Turkey's Energy Market Regulatory Authority has introduced principles for natural gas distribution license holders to determine tariffs, identify investments deemed to be network building expenditures, as well as upper limits for these investments.
On December 22, 2016, a dossier on the Draft Code of the Republic of Kazakhstan "On Subsoil and Subsoil Use" ("Draft Code") was submitted for consideration to the Mazhilis of the Parliament of the Republic of Kazakhstan.
A new Law no. 135/2016 "On safety and health at work, emergencies and rescue in mining and underground works of Hydropower plants" (the "Law") has entered into force on January 27, 2017.
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).