Serving suppliers and traders when working on the Ukrainian electricity market
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The electricity market in Ukraine today is again at the stage of development - there are many new opportunities to enter the European market, establish new sales markets, and participate in new auction platforms. Of course, you need to be a registered participant of the Ukrainian electricity market.
Our company has been supporting the registration of supply companies, traders and electricity producers since the start of the new energy market in Ukraine. However, our main advantage is that we can provide further support, both advisory and accounting, for those who plan to be active in the market.
Today we will tell you what legal support services for companies participating in the electricity market consists of, and who need them.
You may also like: Reporting to the NEURC
Filing reports to the regulatory authorities
Electricity suppliers and traders already operating in the Ukrainian electricity market are required to submit reports.
Monthly, quarterly and annual reports are submitted to the NERC (the licensing authority). There are many of them and they are sent to different departments (to different e-mail addresses), at clearly specified times.
To create reports, it is recommended to use only those forms that are published on the NEURC's website. This way you will be sure that they are up-to-date, which is very important. Note that forms change frequently, you can send reports using outdated forms and not receive feedback. So, reports will not be accepted.
Please note! Submission of reports using an old form, incorrect title, or complete failure to submit them will be subject to inspection by the NEURC and fines of UAH 95 000 which can be imposed even in six months or a year.
In the case of repeated non-submission you face revocation of the license, and therefore the termination of work in the electricity market. No license means no reason to be a participant in the market, and there are no "bypassing" options.
If such a situation occurs, it is a colossal loss of time and money to re-obtain a license or create a new firm, join the market, renegotiate contracts and all the related procedural aspects.
Reports must be submitted even if the company does not operate in the electricity market; the license holder is obligated to do so.
Market participants are also required to:
- If the supplier has consumers, it must submit reports to DSO registers by the 18th-20th of the month preceding the month of delivery. Also, decadal reports must be submitted to the DSO on the volumes of end consumers;
- Provide the registries of the consumers' volumes to NEC Ukrenergo until the 25th of the month preceding the month of delivery
- Provide the Market Operator with information on the volumes of electric power sold on the day-ahead market and/or the day-ahead in terms of each energy source used for its production.
Please note: It is necessary to fill out everything correctly and send reporting forms and registers in a timely manner because it directly affects your further business activities.
Legal support for electricity suppliers and traders
Our company provides legal + accounting support for companies in the electricity market in Ukraine.
Most often under the notion of "legal service" we mean consulting on issues of tax, labor, corporate law, and a law in the sphere of electric power, legal services in court, or disputes of the Client's company with state authorities. Also, we can offer accounting services or solutions to legal issues that arise in the course of the company's activity.
Often we accompany activities from the moment when the company is not yet registered or is not included in the market. This is because we advise even before entering the market, including offering various options, such as buying a ready-made company with a license.
In addition to filing reports, we advise and monitor the work in the market both at the start and during the work, provide practical recommendations, and advise on working on various electronic platforms.
We take upon ourselves all the work in the market with legal support. The client makes only a decision, and the conclusion of contracts and trading on electronic platforms is our prerogative. We also calculate the most optimal steps, minimizing the risks, and the client decides what it needs and what is not profitable. In addition, we follow the timeliness of payments, by the signed agreements with Ukrenergo, the Market Operator, etc. Customers will be informed as soon as possible about all innovations and changes, which means that the process of activity will be as smooth as possible, with no negative surprises.
If there are any problems or inaccuracies in dealing with counterparties, or government agencies, we conduct an analysis and look for a favorable solution for the client of this situation. There is no need to turn to other legal companies for the solution to certain issues. If it is necessary to conclude new agreements or to enter new platforms, we take it upon ourselves, and the client receives the desired result. Moreover, we inform you about the current and profitable updates on the Ukrainian electricity market, because we are interested in the profitability of our client's business.
We follow all changes in the legislation of Ukraine and build our work accordingly. Our staff includes only professional lawyers and accountants.
Accounting support includes not only mathematical calculations in the preparation of reports but also personnel accounting. An actively active company sooner or later hires employees. This is another step that puts several responsibilities before the company. We undertake:
- Preparation of primary personnel documents in the company;
- Drawing up personnel documents in the company;
- Maintenance of personnel records documents;
- Preparation and submission of reports on personnel to the state authorities of Ukraine. The list of reports may vary depending on the specifics of the personnel working for you.
Maintaining personnel records means paying taxes on time when you have employees, as well as painstaking paperwork. Violations in the process of maintaining personnel and accounting records threaten penalties from both the tax and the State Labor Service.
List of documents required from the Client:
- Documents on company registration, a license, and all documents on inclusion in the market (contracts);
- Passport data and identification codes of the director and employees - in case we will provide accounting services;
- Access to all electronic platforms and EDS;
- Information on the number of employees and the estimated number of financial transactions – also in the case of accounting services.
The cost of services is calculated individually based on the competence of the specialists involved and the time spent.
We can create for you a personal package of services for servicing your company's activity with an indication of the monthly number of lawyer's hours or a certain set of actions that our company will provide you with per month or per quarter.
Even with an in-house lawyer or accountant, there are often one-time tasks that require a narrow skill set and ongoing practice. Our company employs specialists, constantly practicing in specific areas of law.
We were among the first in Ukraine to obtain licenses for electricity and be included in the market. Therefore, working with us, you get experienced staff for one-off complex tasks, which greatly simplifies and speeds up the solution of a problematic issue.
A lawyer from our company at the consultation will answer the following questions:
- What volume of services you can choose (we provide comprehensive accounting and legal services to companies, as well as perform individual actions, for example, develop agreements);
- What your company needs depending on the peculiarities of its work.
If you want to know what is included in a comprehensive "lawyer + accountant" package to support your electricity company and understand how much you need, we recommend contacting our experts for an introductory consultation.