How to Obtain a License to Sell Electricity?

The electricity market in Ukraine is undergoing significant changes and development, creating new opportunities for entrepreneurs. Selling electricity is an attractive business avenue, but it requires strict adherence to established rules and regulations. One of the key aspects for successfully operating in this market is obtaining an Electricity Sales License.

This brings up the main question: how can such a license be obtained? Over the past decade, we have helped many companies successfully navigate the licensing process in Ukraine's energy market, and we are ready to share our experience with you. In this article, we will thoroughly explore the process of obtaining an Electricity Sales License in Ukraine, the requirements for companies, the necessary documentation, and the licensing steps.

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What is an Electricity Sales License?

First, let's clarify the terminology. What exactly is meant by an Electricity Sales License? This is the term commonly searched by people who wish to engage in the sale of electricity as an energy resource.

However, it’s important to note that there is no official permit called the “Electricity Sales License.” The closest licenses in content are the license for electricity supply to consumers and the trading license. Trading refers to the act of buying and selling. So, which of these licenses allows you to sell electricity, and to whom?

• Electricity Supply License to Consumers: This license allows the sale of electricity to both end consumers and other market participants.
• Trading License: This license allows the sale of electricity exclusively in the electricity market, meaning to other market participants, but not to end consumers.

As you can see, both licenses allow the sale of electricity. However, the difference lies in who the electricity can be sold to.

What Are the Requirements for Licensees?

The requirements for obtaining an Electricity Sales License—specifically, the license for electricity supply and the trading license—are very similar. Let’s look in detail at the main requirements for licensees.

1. Website. Having a website is a mandatory condition for those wishing to obtain an electricity sales license. The website must serve as a source of information for consumers, providing access to essential data. The website must meet a set of requirements, which we have previously outlined. You can review them here: Mandatory Website Requirements for Obtaining a Gas or Electricity Supply License.

2. Premises for Operations. The licensee must have premises where its activities will take place. It is important to note that this must be a non-residential property. There are no specific requirements regarding the size or presence of any special material or technical base. Information about the premises must be provided in the documentation, but no supporting documents are required.

3. Contact Information. A phone number and other contact details must be provided for inquiries. After submitting the application for the Electricity Sales License (whether for supply or trading activities), the licensing authority will verify that someone responds to the provided phone number and email address.

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Documents Required for Obtaining an Electricity Sales License

What documents are needed to obtain a license for electricity supply/trading?

The following documents must be submitted to the licensing authority:

• A standard application form.
• Information about the means of conducting activities (essentially, the website and premises).
• Information confirming the absence of control by an aggressor state.

If you decide to obtain an electricity supply or trading license with our support, you will only need to provide two documents:

1. A scanned copy of the extract from the Unified State Register (ЕГР) of legal entities, individual entrepreneurs, and public formations. You can obtain this online through the Ministry of Justice of Ukraine's website or by contacting the Center for Administrative Services.

2. A scanned copy of the lease/sublease agreement for the premises (or proof of ownership).

We will handle the preparation of the remaining documents, including the application and any other necessary paperwork. You won't need to worry about gathering or processing the other documents.

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Stages of Obtaining an Electricity Sales License (Supply/Trading)

The question of what steps need to be followed to obtain an electricity sales license is quite common among clients. So, let’s answer it directly: in fact, there are no particularly complicated stages. If you already have a company:

1. You provide us with information about your company.
2. We prepare the website and all the necessary documents.
3. We submit the documents to the licensing authority.
4. You receive the license.

If you don't have a company yet, the first step is to create one. This stage, of course, comes first in the process of obtaining a license, but it concerns the registration of a legal entity, not the licensing process itself.

What Are the Application Review Timeframes?

The National Commission for State Regulation of Energy and Public Utilities (NERC) has 10 working days to review the application and the accompanying documents. It’s important to note that the timeline may vary depending on the situation in the country. For example, during blackout periods, the commission's meetings were held irregularly.

If the situation is relatively stable, your documents may be included in the agenda for the next commission meeting, so the decision could be made even faster than within 10 working days.

Cost of the Electricity Sales License

The official fee for the license is equivalent to one minimum subsistence level for working-age individuals. As of the beginning of 2025, the amount of this fee is 3028 UAH. This fee is adjusted every six months to a year, usually increasing slightly.

Grounds for Denial of the License

The main reason for denial is non-compliance with licensing requirements. Some of the most common mistakes include:

• Incomplete information on the website: Your website, which is mandatory for licensees, either lacks necessary information or contains outdated or inaccurate details.
• Errors in submitted information: The information you provide about your company, its activities, and resources contains errors or inaccuracies.
• False information: Providing false information, such as a lease agreement date that precedes the company’s registration date, can lead to denial. Additionally, if false information is found, you cannot resubmit documents for three months.

How to avoid a license denial for electricity sales activities? Before submitting your license application, carefully review every detail, number, and date. Provide only accurate and up-to-date information about your company and its activities. If you're unsure about the accuracy of your documents or have questions about licensing conditions, it's advisable to consult licensing specialists for assistance.

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Legal Support for Licensing

Obtaining a license for electricity sales (supply or trading) is your ticket to a successful energy business in Ukraine. However, this journey can be full of bureaucratic obstacles and legal intricacies, as it requires: 

1. Knowledge of the law: Understanding all the requirements and regulations governing the electricity market.
2. Experience: Knowing how to properly prepare documents and navigate the licensing process.
3. Time: A significant amount of time is needed to collect documents, complete applications, and communicate with government authorities.

That’s why many companies turn to experts who have the necessary knowledge and experience.

If you’re obtaining a license for electricity supply or trading with us, you won’t need to worry about a thing. We’ve successfully secured over 80 licenses – we know all the nuances of the licensing process. All you need to do is provide us with information about your company, and we’ll handle the rest.

Do you need a license to sell electricity? Contact us today! Submit your application on our website, and we’ll get in touch with you shortly.