The Verkhovna Rada Committee on Fuel and Energy Complex, Nuclear Policy and Nuclear Safety that considered a number of draft laws on connecting to electricity supply networks last week took this decision. All initiatives, including the draft law #4310-1 “On amendments to certain laws of Ukraine (regarding improvement of connecting to electricity supply networks)” developed by a group of people’s deputies with the involvement of the Better Regulation Delivery Office (BRDO) experts, were sent for revision.
“This Committee’s decision suspends the process of creating a transparent and favorable investment climate. Unfortunately, this actually means delaying the reforms in relations between energy transmission companies-natural monopolies and customers interested in the connection procedures for at least six months,” the head of the BRDO Energy sector Oleksiy Orzhel said. He also added that it was a too long period, especially when changing the principles of mutual relations between an energy-supplying organization (natural monopoly) and customers, who are both individuals and businesses, was on agenda.
The expert said that the proposed draft law #4310-1 could make the regulation in this area clearer for a customer. According to him, the approaches envisaged by the draft law will be reflected both in Article 21 of the draft Law of Ukraine “On electricity market of Ukraine” and the subsidiary legislation (in relevant codes) after revision.
“Unfortunately, the postponement of the decision to simplify the connection to electricity supply networks and implement this market reform’s component through its implementation into the major draft Law of Ukraine “On electricity market of Ukraine” brings the same risks as the introduction of a new electricity market has,” the head of the BRDO Energy sector Oleksiy Orzhel emphasized.
The Better Regulation Delivery Office expects that people’s deputies will support initiatives aimed at optimizing the relationship between business and companies-natural monopolies after finalizing the draft law by including the best provisions of other draft laws.
It was expected that the adoption of this draft law would improve the investment attractiveness of Ukraine, in particular – by increasing the country’s position in the World Bank’s Doing Business ranking in terms of convenience of connecting to electricity supply networks.