How To Import Or Export Electricity In Ukraine?
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The introduction of the wholesale electricity market has created new opportunities for Ukrainian and foreign businesses in our country.
The new electricity market allowed exporting and importing electricity to the companies registered as market participants.
Today, we will elaborate on this process and talk about how to properly arrange everything from a legal perspective.
Related article: Procedure For Registration In The New Electricity Market
How to legally arrange the process of importing electricity from Ukraine?
Step One: Set up a company and obtain the appropriate license to carry out operations with the electricity. This can be either an Electricity Supply License or an Electricity Trading License.
Step Two. After obtaining a license, it is necessary to register as a wholesale electricity market participant. In other words, it is necessary to pass the following procedure:
- To obtain the EIC code
- To sign an Electricity Transmission Agreement;
- To accede to an Imbalance Settlement Agreement;
- To open an account with a special mode of use;
- To obtain a digital signature for authorized persons;
- To undergo accreditation in the intraday and day-ahead markets;
- To undergo accreditation in the market of bilateral agreements.
About 90% of the accession work will be done by our lawyers. However, a Client will need to personally perform some steps, such as opening an account or making digital signatures upon the detailed consultation with our lawyers.
Only after passing all stages of inclusion in the electricity market have been completed, it will be possible to participate in the auction on access to the cross-border electrical networks.
Related article: Obtaining The EIC Code
What should be taken into account when formalizing activities related to importing or exporting gas and electricity?
One of the important conditions of participation in the electricity market is a bank guarantee or a financial contribution. Special attention should be paid to the fact that in order to participate in the auction on access to bandwidth interstate electric grid, such a bank guarantee or financial contribution must be proportional to the amount of one hundred (100) minimum wages.
You should also pay attention to the term of the guarantee for each type of auction. Since there are three types of access to bandwidth interstate electric grids:
- Annual (access is granted for the period from 30 days to one year);
- Monthly (access is granted for the period from 1 day to 1 month);
- Daily, which provides access to the bandwidth that has been left undistributed based on the results of monthly and annual use of interstate electric grids.
Thus, for example, the term of the financial guarantee for the annual auction shall start from the date of the auction and last till the day of the penultimate month of participation.
For a monthly auction, the bank guarantee must be valid for 20 days starting from the date of participation.
As for the daily auction, the financial guarantee must have a validity period of 30 days for the duration of the auction.
As for the monetary contribution, it is made only for the period of participation in the auction and only to cover the penalty, in case of violation of the Rules of use of the interstate electric grids. This means that you can get the contribution back after the completion of participation in the auctions.
Related article: Frequently Asked Questions On Electricity Supply
What problems may arise in the process of establishing electricity import or export in Ukraine?
Today, there’s only one problem so far. It centers around the fact that Ukrenergo, NPC has not signed an agreement with foreign companies that are responsible for electricity transmission. Therefore, it is necessary to pay double tariffs for such services.
As for other problems that one may face when getting access to the auctions, our lawyers will help to successfully address any of them.
If you want to import or export electricity in Ukraine, don’t hesitate to call us. We will ensure that you pass through each of the stages without unnecessary delays and expenses.