How to purchase electricity in the new energy market of Ukraine?
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We are often asked, “What is the complete procedure for starting an energy company with connection (entry) to the electricity market? What are the terms? What will it take? And how long will it take?”
We have been working in this area for many years and have gone through the whole process many times, adjusting to all the changes and developments. That’s why we decided to write this material with step-by-step guide and explanations on how to start your electricity company.You may also like: Electricity Imports And Exports
|Stage||List of the documents required*
||Performance time limit with lawyer’s assistance**||Performance time limit without lawyer’s assistance||Price***||Legal advice
|Starting a company||Copies of passports and identification tax codes of all founding members||1-2 business days||The procedure can take about a week||About UAH 6,000, in case of a standard procedure||The license can be issued to an individual entrepreneur. However, a LLC is the best option in terms of tax administration.|
|VAT registration||EDRPOU code||
In case of timely request, it can take 1-2 business days.Alternatively, you can buy a VAT registered ready made company
It can take about 2 months, if you miss the established filing period
|It is usually included in the company registration fee||You won’t be able to sign an agreement with Ukrenergo. NPC without passing this stage.|
|Obtaining the license||
Bank account details
Information on actual business place
|12 business days, regardless of whether we take over the development of the website or not||It can take a couple of months||
UAH 12,000, if we only obtain the license
UAH 22,000 UAH, if we prepare the required documents and develop a website
|As practice shows, the development of the site often delays the process, if this work is not done by our specialists|
|Obtaining an EIC code and creating a company's personal account||
NEURC resolution on the license issuance
|3-4 business days||Up to 1 week||Included in the cost of signing an agreement with Ukrenergo, NPC||This stage requires thorough attention, because it is a kind of identification code of the company|
|Signing a transfer agreement with Ukrenergo, NPC.||
Copy of the charter
Extract from the Unified State RegisterCopy of the decree
|2-3 business days||2-3 weeks||UAH 30,000||Although the list of documents seems quite simple, it is necessary to prepare several applications completed in the prescribed form, as well as all documents properly certified in order not to be refused by Ukrenergo, NPC|
|Joining the imbalance and balancing market||Contacts of persons who will work on the MMS platform||2-3 business days||1 week||Included in the cost of signing an agreement with Ukrenergo, NPC||At this stage, it is important to properly prepare all the documents and choose the appropriate market segments so that there will no longer be a need to take up this issue|
|Signing an agreement with the Market Operator (day-ahead market and intraday market)||
Minutes and decree appointing the director
List of documents, which is given during the LLC registration.
Extract from the Unified State Register
Extract from the VAT payers register
Certificate of opening a regular and special bank account
Copy of the letter confirming the registration as a market participantElectronic Digital Signature certificate
|1 week||About 1 month||UAH 15,000||The stage of joining the Market Operator can be considered the stage of joining the intraday market and day-ahead market. Each error at this stage may cost you 1-3 days. Besides, the electronic digital signature and special bank accounts are often questioned, which may also take 1-2 weeks of your time|
|Accreditation at the Ukrainian Energy Exchange (UEE)||
Passport and identification code of the person who will work in the system
Extract from the Unified State Register
Decree and minutes appointing the director
Electronic Digital Signature Certificate
|Up to 1 week||2 weeks||UAH 15,000||The complexity of this stage is that the UEE has several sections, and the electronic digital signature obtained for Ukrenergo, NPC is not suitable for this stage. Besides, the procedure of accession is performed online, and paper documents shall be submitted with due time only|
|Signing of a public contract with Oblenergo and DTEK||Depends on each specific Oblenergo||1 week||1 month||UAH 5,000||As a rule, we don’t help our Clients to join all Oblenergos and DTEKs, in order to save their money. We only show them the procedure using one example, and provide them with effective tools to accelerate the process|
* - We don’t specify the documents to be prepared by our lawyers.
** - Upon the receipt of the full list of documents.
*** - May be lower or higher depending on your situation. Please call us for assessing the case.
Some of the above stages can be reduced by purchasing a shelf company that has already obtained the license and underwent some stages. For example, a company that has already entered into the agreement with Ukrenergo, NPC and joined Oblenergo.
You may also like: How To Join Oblenergo?
Undergoing some of the stages are financially unprofitable for a shelf firm for sale, as the Exchange and the Operator provide for mandatory payments on a monthly basis and the obligation to receive electronic digital signature for a person who will work on the appropriate trading platforms. The timely advice of a lawyer will help you to make head of all these issues.
If you want to get the Electricity License, to become a participant of the new electricity market, or get advice on your activities - don’t hesitate to contact us.
We are ready to help you!
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