Optimization of the procedure of connecting to electricity supply networks will save hundreds of millions hryvnias for business

Introducing the optimized procedure of standard connection to electricity supply networks will allow the business to save more than 5,000 hryvnias on every connection procedure. The Head of BRDO Energy sector Oleksiy Orzhel informed about it during the roundtable discussion on legal ways of simplifying procedures of connecting to electricity supply networks.

The total amount for the whole country would be more than 285 million hryvnias. These calculations were held on the basis of the SME-test that helps define the burden on small business. Connections statistics for 2014 and the first half of 2015 were used for them. It was a period of the economic slowdown, when the number of connections to electricity supply networks decreased significantly.


That is why, according to Oleksiy Orzhel, now this cost-cutting for business and citizens will be larger.

“The most important thing for us is to get an effective and functional mechanism of connection to electricity supply networks. We don’t have another way but just to move forward and achieve increased investment prospects of the country and the opportunities for a good quality of life,” Oleksiy Orzhel emphasized.

The BRDO with the Ministry of Economic Development and Trade and the Ministry of Regional Development, Construction, Housing and Communal Services of Ukraine participated in the working group on simplifying procedures of connection to electricity supply networks. The working group prepared its proposals.

Particularly, it is suggested to optimize the connection procedure through introducing a public offer agreement and submitting a package of documents for the connection by email. In addition, the simplification of situational plan requirements and the possibility of submitting open sourced electronic files with site drawing presentation are being provided for standard connections.

Fines for exceeding the period offered for the connection procedure are being introduced.

Besides, it is provided for introducing a new category of connection – integrated standard connection. This is connection from 160 kW to 5 MW. Thereby the principle of procedure simplification and determining a fee for connection services at this power range are being implemented. The introduction of a new connection category will allow to cut business costs (particularly, medium business costs).

It is to be reminded that the small and medium business (SME) access to energy sources is a basis of their existence and development. According to experts, an existing Ukrainian system of connection to electricity supply networks is a large barrier for SMEs because of the complexity and overregulation of procedures, a lack of defined terms and reasonable tariffs for connection.

According to the World Bank Doing Business 2016 rating, Ukraine takes the 137th position (in 2015, Ukraine took the 138th position) in terms of “Connection to electricity supply networks”, the period to connect electricity-generating equipment of consumers is 263 days, and the number of procedures that need to be passed through is 5.