How to get a license to supply electricity for a shopping center or hotel?
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When deciding to start a shopping mall or other similar business project, such as a hotel, you will have to solve many problems that affect not only the initial cost of the entire project, but also the further costs of its maintenance. One of such problems is the supply of electricity for your building or complex of buildings at an attractive price.
Since the start of the electricity market in Ukraine, many entrepreneurs have got the opportunity to obtain an Electricity Supply License and freely buy electricity. This allows them to supply electricity to their enterprises themselves.
Thus, we have already obtained the electricity Supply License for several Clients to implement the following business scheme: having a main business that requires constant electricity supply, we register a company and obtain the Electricity Supply License. With its own supplier, the entrepreneur buys electricity at a good price and supplies it to the desired businesses.
Today we will tell you more about the practical aspects of this scheme, and how to schedule the license and further inclusion in the electricity market in the start of a shopping mall or a hotel in Ukraine.
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Obtaining an Electricity Supply License for a shopping mall or hotel
The first thing to keep in mind is that it takes about 2-4 months, depending on the situation, to fully prepare, obtain the license, and enter the market. This time should be taken into account from the very beginning, and it should be clearly understood whether such a scheme will suit you. It is also quite possible to obtain a license in parallel with the preparation for the start of your main business. Our lawyers will help to organize the whole process correctly.
Obtaining an Electricity Supply License is only the first stage. Then you will have to get registered as an electricity market participant. This is where you will purchase electricity for your enterprises.
But you must start with the registration of a supplying company. This process takes only a couple of days, but it is worth taking the time to work out a personalized Charter.
The procedure of obtaining the license involves some preparatory work:
Develop a company website — it must comply with clear requirements, which are checked by the National Energy and Utilities Regulatory Commission (NEURC). To save money and time, our company offers to take care of the development of your website. This guarantees its compliance with all requirements of the licensing authority;
Obtaining the electronic digital signature for further work in the energy market;
Obtaining a VAT status, as your counterparties will be legal entities with VAT.
The licensing authority has its own practices and opinions on the premises, personnel of the vendor companies, which you can check here. Our lawyers independently prepare all the statements for the submission of documents for the license. We also provide legal support of the procedure of application consideration and keep constant contact with the NEURC until the receipt of the license.
Please note! Each business project is unique, which means that we can understand whether the scheme with your own electricity supplier is suitable for you only after a detailed analysis of your business plan. But even if the electricity supply scheme will be unprofitable for you, our lawyers will help you find other ways to optimize costs at the start of your business.
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Joining the electricity market to supply electricity to a shopping mall or hotel
Registration on the electricity market is a multi-step procedure, which we have described in detail here. In a nutshell, you will have to go through the following steps:
Obtaining the EIC code of type X;
Signing an agreement with Ukrenergo;
Connection to Oblenergo;
Conclusion of the agreement with the Market Operator;
Registration on the Ukrainian Energy Exchange.
It’s worth noting that the energy market is not one market — it is divided into segments — separate markets with their own rules of operation and registration. However, you do not have to register in each of them — you can choose the markets that are attractive for your business.
Since many of our Clients, when getting an Electricity Supply License, do not plan to make the electricity supply their main business, we provide staff training services for further work at the electricity market. You will get the necessary information about working in the market to meet your needs.
We provide assistance not only in obtaining an Electricity or Gas License, but also in solving other issues that may arise at the start of your business in Ukraine, for example:
Obtaining any business licenses, including casino or construction licenses;
Assistance in resolving land issues for the construction of a shopping mall, hotel or other projects;
Assistance of a tax lawyer in matters of business tax optimization;
Business accounting services under the supervision of a lawyer;
Sale of ready-made companies with licenses;
Personnel records management, employment of foreign personnel, including top management.
We offer a simple solution and a guaranteed result for your business.
If you are starting a large business project, it is in your best interest to do everything possible for its reliable, safe and efficient start. We will take care not only of the legal safety of the project, but will also find non-standard personalized optimization schemes for your business.
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The cost and procedure of obtaining an Electricity supply License.
The cost and procedure of entering the energy market.