Inclusion in the gas market in Ukraine during the war
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The gas market is an important and highly relevant area of business. However, the sale of natural gas is a rather complicated process, both technically and legally, especially in wartime conditions.
Business entities that want to operate in the field of gas supply must first obtain the appropriate license, then get accredited and conclude contracts with several responsible agencies. Let's talk about everything step by step.
How to enter the gas market during the war?
To enter the market, you must first obtain a Natural Gas Supply License. One of the important conditions for obtaining such a license is to have a website, which must comply with license conditions. You can read more about website requirements here.
Our experts can also help you to design a website in accordance with all legal requirements. We have extensive experience in licensing on a turn-key basis: from developing the website to obtaining the license itself. We also support our clients after obtaining the license, because this is not the end of the process.
During the war, the procedure for obtaining a license has its peculiarities. While previously it was possible to submit documents in person, and during lockdowns - to drop them into the NEURC (National Energy and Utilities Regulatory Commission) box, during the war we made a complete transition to electronic filing. Consequently, documents can only be filed if the firm has an electronic digital signature (EDS). It should be noted that EDS is required in the future - both for inclusion in the market and for work on it.
There are certain requirements to the key, and there is even a list of key certification centers that work with, for example, the Ukrainian Energy Exchange. Therefore, you should get the "right" keys, so that you do not have to apply for them later.
You may also like: Gas Transportation in Ukraine: How to Establish the Process?
How to get an EIC code for the gas market in Ukraine?
The EIC code is an individual number for each company specifically in the gas and electricity market. The EIC code for gas suppliers is assigned by the GAZOTRANSPORT SYSTEM OPERATOR OF UKRAINE LLC (GTS Operator).
To receive an EIC code, an application should be submitted in the prescribed form. If everything is filled out correctly and there are no remarks, the code is issued within several business days. The entity is given access to a personal account and is sent a login and password to log in.
Concluding an agreement with the GTS Operator
After the EIS is received, documents can be submitted to the GTS Operator for the conclusion of a natural gas transportation contract. The package of documents to be submitted consists of an application in the prescribed form and annexes thereto in the form of duly certified copies of a list of documents, including constituent documents.
Now, during the war, in order not to submit documents twice, their scanned copies can be sent to the e-mail address listed on the GTS Operator's website. If everything is fine, paper documents can be sent to the address of the main office. The consideration process takes about a week, on average.
Then it is necessary to fill in a rather voluminous and detailed questionnaire, and an application form, attach duly certified copies of company documents (the list of which is specified in the application form) and submit them to the address specified on the website of UKRTRANSGAZ JSC. You can find out why the natural gas supplier has to conclude a particular contract and with whom here.
Accreditation with the Ukrainian Energy Exchange (UEE).
This is probably one of the most complicated and time-consuming procedures. To be accredited with the energy exchange, you need to:
- Register your personal account;
- Fill out an electronic application and attach documents for accreditation (application, detailed questionnaire to it and certified copies of documents);
Note. There are certain instructions on how to properly certify documents. Namely: SURNAME The name of the head is indicated as - PETRENKO Oleksandr. That is the surname shall be written in capital letters, and only the first letter of the name shall be in capital letters. The patronymic name is not specified. Next to put a signature, the words "a first-hand copy", the date, and the seal (if any). Thus, each page shall be certified, including each page of the Articles of Association.
- At this stage, you also need an electronic digital signature. A key certificate must be attached to the electronic form.
- The UEE reviews the documents within a few days. If everything is fine, their employee contacts the head of the company for verification.
There is nothing complicated about the verification procedure. The UEE employee makes an appointment with a company executive for a convenient time to go into a Zoom conference.
At the conference, the company manager will have to show his passport on a video camera, confirm his identity, and answer a few questions from the UEE employee (such as when you plan to start work on the platform).
- After verification, the Exchange provides passwords and access to platforms and sends an invoice for the first payment. The payment must be made on a monthly basis.
Note it's a tough task to correctly file the documents on the first try. The Exchange may ask for an additional letter of confirmation as to why the report was submitted only once a year. They may also find that scanned copies of documents are of insufficient quality, that the executive's signature is different from the one in his passport, and many other such things.
On average, in practice, the accreditation at the Exchange takes about two weeks. Thus, the entire process of joining the market, not counting the time to obtain a license, lasts about one month, sometimes a little longer.
Together with the license, the procedure will take at least a month and a half or two months. So, if you need to speed up the procedure, we can offer you ready-made companies that already have a gas license, and some even have an EIC code. This will greatly facilitate the process.
The entire process of inclusion in the gas market can be done without your involvement, that is, simply and quickly for you. This is exactly the kind of service offered by our company.