This topic was discussed at the round table “Optimization of procedures for connection to electricity supply networks: concrete steps to find an agreed solution of suppliers and users” that was recently held in Sumy. The government, business, socially active members and representatives of energy supply companies discussed the abovementioned issues. The Better Regulation Delivery Office attended the event.
“Connecting to electricity supply networks is one of the biggest weaknesses of the national energy market. Ukraine currently takes the 137th position in the world ranking in terms of the timing and transparency of this procedure and, of course, this factor influences the reduction of its investment and business attractiveness,” the head of the Better Regulation Delivery Office (BRDO) Energy sector Oleksiy Orzhel said. He also added that this issue should be a priority for regional authorities within the decentralization process.
In his turn, the head of the Sumy Regional State Administration apparatus Dmytro Zhyvytsky said that this issue had long been on the region’s agenda, and that is why the regional state administration had initiated the holding of this round table.
“I was a member of business organizations and a member of the regional council of entrepreneurs. I know that 50% of communication of the government and entrepreneurs is focusing on problems related to connection to electricity supply networks and cooperation with energy supply companies,” he said.
According to him, while using its monopoly position, ‘Sumyoblenergo’ doesn’t meet the needs of entrepreneurs and purposely makes the process of their connection complicated and slow. This negatively affects the business activity, product cost and investment climate in the region.
“We want to establish cooperation in this field that would be beneficial for both energy supply companies and the business as well as to solve this issue both at the legislative and regional levels,” Dmytro Zhyvytsky said.
The head of the Better Regulation Delivery Office Oleksiy Honcharuk told the round table participants that the relevant law aimed to reform the procedure for connecting to electricity supply networks was drafted with direct involvement of BRDO experts last December.
“Today’s period to connect consumers is 263 days and the cost of this procedure is almost 800% of GDP per capita. This makes the development of the business, especially the small and medium one, and the implementation of investment projects on the territory of Ukraine virtually impossible. Therefore, BRDO experts took into consideration the best regulatory practices in this area when drafting the law. Now it is in the Verkhovna Rada relevant committee and we hope that it will be adopted in the near future,” Oleksiy Honcharuk said.
The round table participants decided to officially apply to people’s deputy with a request to support legislative proposals that would improve the situation with the connection and have a positive impact on the relationship between monopolist companies, entrepreneurs and the business.