License for supplying of electricity (Ukraine)

Obtaining an Electricity Supply License in Ukraine in 2024

It is essential to remember that the National Commission for State Regulation of Energy and Public Utilities (NCSREPU) currently does not issue paper licenses due to the transition to electronic licensing. For more details on the features of the new law, you can refer to the provided link. However, if necessary, we can obtain a certified copy of the resolution on license issuance. 

The license for electricity supply is issued for an unlimited term. 

Particular attention is given to the electricity supplier's website, which must contain up-to-date information about: 

• Communication means with the supplier, including addresses and phone numbers of service centers. 
• Procedures for consumer inquiries, as well as information on complaints and claims. 
• Current legal regulations governing the supplier's activities. 
• Conditions of energy supply, prices, and terms. 
• A list of supplier services, terms of agreement signing with the supplier, etc. 

The commission verifies not only the presence of necessary information on the website but also the relevance of the provided phone numbers and contacts. The information on the company's website should correspond to the information filled in the Statements. In other words, phone numbers, email, and the address for consumer service must be identical. Otherwise, your documents will be returned without consideration. 

The standard review period for the application is 10 working days from the date of document submission. However, the commission's reviews do not always follow the schedule (1 per week) currently, which may affect the overall term of obtaining the electricity supply license. 

Please note! After the positive decision on license issuance is published on the licensing authority's website, you have 10 working days to pay the state fee for the license issuance and submit the receipt to the NCSREPU. Failure to pay the fee on time may result in the annulment of the decision to issue the license. 

Our lawyers will ensure timely payment of the fee for obtaining the electricity supply license. 

Legal advice on obtaining a license for the supply of electricity

If you want to get a deeper understanding of the issue of starting a business in the energy sector, to understand how the whole process will take place and what should be taken care of in advance, contact our specialists for an introductory consultation. 

At such a consultation, a lawyer: 

• Will analyze your situation and ultimate goal; 
• Will tell you the nuances of the procedure that you need to know about; 
• Will tell you what actions will need to be taken to achieve your goal; 
• Will offer you the best option to achieve your goal; 
• Will answer questions about the timing and full cost of obtaining a license. 

If your questions are not limited to that, for example, if you want to know about the procedure for further registration as a member of the electricity market, to consult on taxes and other issues, and if you need a step-by-step algorithm of further actions - we recommend ordering the "Road Map. This is a detailed instruction that our lawyer develops taking into account all the peculiarities of your situation.

If you order the service of obtaining a license for the supply of electricity, the price of the "Road Map" will be included in its cost. 

How to Obtain an Electricity Supply License for Operating a Shopping Mall or Hotel?

With the initiation of Ukraine's electricity market, many entrepreneurs now have the chance to obtain an electricity supply license and purchase energy independently. This opens up possibilities for taking control of energy supplies for their own businesses. If you're planning to open a shopping mall, hotel, or similar business, you might find the opportunity to supply electricity to your property or a group of buildings at a favorable rate advantageous. 

We've successfully facilitated several clients in obtaining electricity supply licenses for this business model: alongside their main business requiring a consistent electricity supply, they set up a subsidiary company for which an electricity supply license is obtained. Owning a supply company allows the entrepreneur to purchase electricity at beneficial rates and supply it to their required businesses. How does this approach work in practice? 

The first step is obtaining an electricity supply license. Following the licensing, the next phase involves registering as a participant in the electricity market, where you will procure electricity for your businesses. However, before this, it's essential to establish your supply company, a process taking just a few days, but requiring careful crafting of a personalized company charter. 

Please note! Every business project is different. Determining if having your own energy supplier fits your needs can only be done after an in-depth analysis of your business plan. And even if an electricity supply scheme doesn't turn out to be beneficial, our legal team can guide you in finding other ways to optimize start-up costs for your business. 

How to Maintain Your Electricity Supply License and Avoid Penalties 

Timely updates to your electricity production license or related activities are a key licensing obligation. Updating company documents is often required due to changes like a new director, a change of address, adding locations of power facilities, or changes in company membership, among others.

This updating process is complex and multi-faceted, where overlooking even small details can lead to significant consequences. Neglecting these updates can result in penalties ranging from fines to the revocation of your essential license for electricity supply activities.

Consequently, failure to comply with licensing requirements can lead to:

• Fines ranging from 85,000 to 170,000 UAH, depending on the violation
• Suspension of your license
• Cancellation of your electricity supply license

Please note! If a license is revoked, reapplication for a new one is not permitted until after one year.

How and when to report changes? Upon obtaining an electricity license, you submit details to the National Commission for State Regulation of Energy and Public Utilities (NCSREPU) about your role as a future licensee and electricity market participant.

Should any changes occur in your company’s details that were provided at the time of licensing, it's imperative to inform the licensing body within 30 days. This applies even in situations such as changes in equipment for electricity producers or management changes.

To avoid issues, you should prepare and submit updated information about the licensee, along with a notification letter to update your details as the holder of the electricity supply license or any other type of license.

With efficient planning, these documents can be readied and filed in just a couple of days. The NCSREPU may take up to a month to process these documents. When you enter the electricity market, you agree to follow certain conduct rules, impacting your compliance with the NCSREPU standards.

For instance, a breach in the electricity production sector could be non-compliance with dispatch commands, like failing to provide the necessary documentation and reports to the system operator.

While not a direct licensing infringement, the system operator, tasked with ensuring the timely and correct execution of dispatch commands, may report severe violations to the NCSREPU, potentially triggering unscheduled inspections of the concerned licensees.

Electrician license requirements (electrician license lookup)

• development of all documentation required for licensing;
• preparation of information for the license applicant’s website, or checking it for compliance with the licensing conditions (in case the website exists already);
• providing a completely prepared package of documents for the National Energy and Utilities Regulatory Commission;
• control of support of the case at all stages of consideration by the commission;
• getting a certified copy of the resolution about license issuing (if required).

Availability of additional documents to be added to the main package of documents can be referred to particularities of licensing for production/transmission/distribution of electric power, and namely:

• a copy of articles of association certified by a notary;
• description of activity;
• tariffs (with calculations) for supply;
• detailed description of the territory of activity;
• a document confirming sufficiency of assets in the declared amounts (in case of lack of personal assets);
• an accounting balance report, and other.

The license electricity contractor document package shall comprise the following:

• information about places and means of performance of the stated business activity;
• information about availability and content of materials and technical facilities for performing a specific type of business activity;
• information about employees’ education and qualification level (concerning their sufficiency for performing a specific type of business activity), and other;
• statement and information for imposing a tariff, and other.

In case you have questions, please, consult our specialists.