NKREKP has 18 days to simplify the connection to electricity networks for business

National Commission for State Regulation of Energy and Public Utilities (NKREKP) has 18 days to give effect to Article 21 of the Law “On Electricity Market”. This will make electricity more affordable and simplify the connection to electricity networks. To give effect to this Article, three basic acts should be adopted:

• distribution systems code
• methodology to set a connection fee
• connection fee rates

The BRDO Office provided the NKREKP with recommendations on the implementation of Article 21 of the Law “On Electricity Market”. We initiated a #UvimknyUkrainu countdown before Article 21 comes into effect, and this period expires on March 11, 2018. BRDO’s recommendations:

• Avoiding delays in implementing Art.21: it will come into effect in March 2018, but according to the acts, its final implementation will be in 2019;
• Preventing the creation of restrictions, which are not envisage by law: the NKREKP plans to introduce certain connection rules for power-generating units, while the Law established equal conditions for all units;
• Applying a “benchmarking” principle when setting up connection fee rates as a way to stimulate oblenergos to reduce inefficient expenditures;
• Preventing the creation of an additional administrative burden on businesses: the NKREKP wants to obligate oblenergos to agree the documents necessary for setting the rates with the Ministry of Energy and Coal.

The market expects miracle to happen, since if the NKREKP doesn’t adopt these decision, this will make it impossible for customers to connect to electricity networks and can stop many business activities in Ukraine.