Consulting and reporting on the Ukrainian energy market
Cost of services
Reviews of our Clients
... our work on joint projects assured us of your high level of professionalism
What we offer
In addition to helping businesses obtain licenses for electricity supply and trading, our company offers a wide range of services tailored to the needs of the energy market:
ccounting and payroll services
HR administration and personnel management
Preparation and submission of essential financial reports
Specialized training for your staff on effective energy market operations
Expert guidance on creating and presenting reports to the National Commission for State Regulation of Energy and Public Utilities (NKREKU)
Integration with regional electricity distribution companies (oblenergo)
Preparation and submission of reports (monthly, quarterly, annual) to the NKREKU
Resolving various other challenges related to operating in the electricity market
Accounting and Legal Services for the Electricity Market Operator
We specialize in providing top-notch accounting and legal services tailored specifically for the dynamic electricity market. Whether you're launching a new venture or seeking reliable and professional accounting support, we have the knowledge and expertise to assist you every step of the way.
Streamlined Reporting to the NKRECU
As a company operating in the electricity market, you have reporting obligations to the NKRECU. Reporting is done on a monthly, quarterly, and annual basis. Our company can help you in the following ways::
- Report Preparation and Submission. Based on your business activities, our specialists will compile and assist you in submitting the necessary reports to NKRECU.
- Staff Training on Reporting. If you already have staff members and need to train them on reporting obligations, we offer training programs tailored to your specific needs. The cost and scope of training will be determined based on your requirements.
Technical Support for Operating in the Electricity Market
If you're looking for reliable experts to assist you in establishing a strong presence in the electricity market, we have the services you need.
Our services include:
- End Consumer Consumption Planning
- Submission of Distribution System Operator Registers
- Submission of Bilateral Contract, Day-Ahead Market/Intraday Market Nominations
- Monthly Cycle Closure
- Supplier Switch Requests
- Assistance with the Distribution System Operator
- Balancing and Unbalance Settlement.
Service packages offers
- Preparation and signing of reports with an electronic digital signature in the established format
- Submission of relevant reports (at the end of each of the three months of the quarter and for the quarter itself)
The package can be provided at a price of 4500/month or 16000/quarter when paid per quarter.
- Preparation and creation of NCRECS reporting for the client (monthly or quarterly or annual)
- Providing advice on reporting and sending it to the regulatory body or filing
- Submission of reports according to licensing regulations, monthly, quarterly and annually
To submit a report, we need:
- Access to 1C (or a similar system) or accountant contact for providing numbers (acts) on purchase and sale and services of OSP, OSR, OR
- Access to primary documentation (to check numbers from 1C, if necessary)
- Contact of a technical specialist to provide information on end users
The package can include in any combination:
1. Accounting service at the rate of up to 20 operations/month
- calculation and payment of salaries for employees (payroll)
- keeping personnel records
- bookkeeping (by employees), payment of taxes and fees and submission of reports
3. Legal services (up to 5 legal hours per month)
- consulting on legal issues arising in the course of activity
- legal support of contractual work, work with employees and involved persons, corporate issues
- registration of vacations, sick leave, transfers, etc
- Preparation of documents for registration in additional Oblenergo in Ukraine
- Submission of documents to the selected Oblenergo
- Obtaining confirmation from oblenergo that the company is entered in the register of suppliers
What are the forms and types of reporting, reporting deadlines (monthly, quarterly and annual)
- where to find reporting form templates, how to use the instructions and fill in the forms, name them correctly and send them
- specifics or life hacks (if any) for filling out and submitting reports
- features of contributions to regulation
- signing and submitting forms. Submission methods: e-mail or through the Unified portal
- small demonstration (on an example, if there is an EDS) of how to make and submit one of the forms
- answer basic simple reporting questions
- demonstrate (on the example of one of the forms) the process of compiling and submitting reports (before clicking "send")
- register on the Unified portal (if necessary)
- we will provide links to sites where templates of the actual forms you need are published
- we will provide a table with the types and terms of reporting.
At training we:
- analyze the case (report) together with the client
- answer the questions. Issues that require additional work and analysis by a lawyer are agreed upon separately
- show and demonstrate the work using access to the client
What Documents Do You Need to Operate in Ukraine's Electricity Market?
- License for conducting commercial activities in electricity supply to consumers or a license for electricity resale (trading activities).
- EIC code - a code required for conducting operations in the electricity market.
These are the essential documents you'll need to become a market participant. However, your responsibilities will also involve entering into contracts with partners, submitting the necessary reports, and maintaining internal records.
Types of Reports Required in Ukraine's Electricity Market and Submitted to the NKREKU
- Monthly Reports
- Quarterly Reports
- Annual Reports
The complexity of these reports will typically depend on factors such as the number of bilateral contracts (for traders) or the volume of consumers (for suppliers) you're working with.
What Contracts are Made in Ukraine's Electricity Market?
Bilateral Contracts. These contracts involve the buying and selling of electricity between two market participants outside of the organized market segments. The pricing is determined through mutual agreement between the parties.
Electricity Supply Contracts. These agreements govern the supply of a specific volume of electricity to end consumers over a defined period.
Imbalance Settlement Agreements. These agreements regulate the purchase and sale of imbalances within the boundaries of the balancing market costs.
Participation Agreements in the Day-Ahead and Intraday Markets. These agreements outline the terms of participation for suppliers in the day-ahead and intraday electricity markets.
Transmission Capacity Allocation Agreements. These contracts regulate the acquisition, usage, sale, payment, and termination of physical rights to utilize international interconnections.
We are ready to help you!Contact us by mail [email protected] or by filling out the form:
Training for Operations and Reporting in the Electricity Market
If you're looking to gain expertise in presenting both essential company reports and specific reports to the regulatory authority (NKRECU) in the electricity market, our company offers comprehensive training services tailored to these processes.
Our training courses cover a wide range of reporting requirements, equipping you with the knowledge and skills to effectively manage your company's reporting obligations in accordance with regulatory standards and NKRECU guidelines.
For details on training options, refer to the packages above or consult with our specialists.
Taxation in the Ukrainian Electricity Market
On the Ukrainian electricity market, businesses operate under the general taxation system. As electricity traders, companies are also responsible for Value Added Tax (VAT) payments.
Under the general taxation system, the corporate income tax rate is set at 18%.
The Value Added Tax rate applicable to electricity trading activities is 20%.
For employees, obligatory contributions include the Single Social Contribution (minimum of 1474 UAH), Personal Income Tax (18%), and Military Tax (1.5%).
Furthermore, in addition to meeting NKRECU reporting requirements, companies engaged in electricity supply or trading must comply with standard reporting obligations applicable to all businesses. Our company takes care of your reporting needs as an electricity supplier or trader, including accurate tax calculations and timely submission of mandatory reports.
Inclusion to Additional Oblenergos
When registering in the Ukrainian electricity market, one important step is to establish connections with Oblenergos. Typically, new participants choose a specific Oblenergo to partner with. However, in our experience, there have been cases where companies opted to connect with all Oblenergos across Ukraine simultaneously.
As your presence and activities in the Ukrainian electricity market evolve, you may find the need to expand and connect with additional Oblenergos. Rest assured, we are well-equipped to assist you in this process.
Answers to frequently asked questions
Failure to submit reporting to the NKRECU can result in the imposition of penalties.
Absolutely! In addition to assisting with legal matters, we offer comprehensive training programs for you and your staff.
In the early stages of operations, it's common for companies to be in the process of setting up their infrastructure or acquiring end consumers. Despite not actively conducting activities, it remains necessary to submit reporting to NKRECU and maintain proper accounting records. We provide assistance and support in these situations to ensure compliance with regulations.
Absolutely! We have skilled lawyers who specialize in various aspects of the electricity market, including contract matters.
How the Electricity Market Works in Ukraine
The electricity market in Ukraine comprises several key players, including producers, traders, electricity suppliers, consumers, distribution system operator, guaranteed buyer, market operator, and transmission system operator.
Electricity Producer: These are licensed companies responsible for generating electricity in Ukraine. Power is generated through nuclear, thermal, and hydro power plants, as well as alternative energy sources.
Electricity Trader: Licensed traders engage in the buying and selling of electricity, exclusively for resale purposes. They do not supply electricity directly to end consumers but focus on trading activities.
Electricity Supplier: Licensed suppliers are authorized to sell electricity to end consumers. They enter into supply contracts with consumers and can also purchase electricity for resale purposes.
Consumer: Consumers can be individuals, including sole proprietors (individual entrepreneurs), or businesses that purchase electricity for their own consumption. They are the final users of electricity.
Distribution System Operators (DSOs) is a company responsible for the safe, reliable, and efficient operation, maintenance, and development of the distribution system. They ensure the long-term capacity of the distribution system to meet the justified demand for electricity distribution while considering environmental protection requirements and energy efficiency. Since January 1, 2018, the functions of the DSO have been assumed by regional electricity distribution companies (oblenergos) in accordance with their licenses for electricity distribution.
Transmission System Operators (TSOs) is a licensed company that carries out activities related to the transmission of electricity. The TSO is responsible for operating, dispatching, maintaining, and developing the transmission system and international power transmission lines. In Ukraine, these functions are performed by the State Enterprise "NPC Ukrenergo."
Guaranteed Buyers (GBs) are state-owned enterprises that represent the interests of citizens and the state in the electricity market. They purchase electricity from producers who receive a "green" tariff and ensure the functioning of the Public Service Obligation (PSO) mechanism. GBs also organize auctions for renewable energy generation.
The Market Operator (MO) is responsible for organizing electricity trading in Ukraine's Day-Ahead Market (DAM) and Intraday Market (IDM). The MO plays a crucial role in maintaining a balance between electricity supply and demand in the market.
Structure of the Ukrainian Electricity Market
The Ukrainian electricity market operates through various interactions among market participants involved in buying, selling, transmission, distribution, and supply of electricity. Here are the main market segments and their characteristics:
Bilateral Contracts: These involve direct agreements between two participants outside the organized market segments. Electricity is bought and sold based on mutually agreed terms, except for consumer supply contracts.
Day-Ahead Market (DAM): This segment facilitates trading of electricity for the next day at competitive prices determined through open competition.
Intraday Market (IDM): After the Day-Ahead Market concludes, participants can continue trading electricity during the delivery day, allowing for adjustments and additional transactions based on real-time needs.
Balancing Market (BM): The Balancing Market ensures real-time balancing of electricity supply and demand within the current day. Participants trade electricity to address any imbalances, and prices are determined according to market rules.
If you are entering the Ukrainian electricity market and wish to learn how to navigate it effectively or prefer to entrust your reporting obligations to professionals, feel free to reach out to us!