Obtaining a license to supply electricity to a real estate developer in Ukraine
An Electricity Supply License may be needed not only for entrepreneurs directly involved in such activities, but also for other businesses. In our practice, there have been many cases where we have been contacted by real estate developers or companies engaged in the development of entire neighborhood units for obtaining such a license.
The point is that having not only a Construction License, but also an Electricity Supply License and in some cases even a Fire Protection License, the real estate developers are able not only to offer their Clients the exceptional service and more comfortable utilities, but also to optimize their expenditures for electricity during the construction.
Using the example of one of our Clients, we will tell you when and how to get such a license, if your main type of activity is construction.
If you want to know immediately the cost of obtaining a license and joining the market, please contact our experts, or follow the links at the bottom of the article.
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Supplying electricity to your apartment complex
We were approached by a Client who we helped two years ago to obtain a Construction License and other permits required to start construction.
The Client was about to start a new project — the construction of an apartment complex, and wanted to understand whether he could somehow optimize his expenses if he would also obtain an Electricity Supply License.
Last time we helped him not only to get a Construction License, but also resolved many other issues related to the start of work — for example, we quickly organized the staff training to obtain a Declaration of the State Labour Service. That is why the Client turned to us, because he wanted not only to get an adequate analysis of the profitability of this solution, but he also expected to obtain the license on a turnkey basis.
We have analyzed the Client’s situation and concluded that in his case obtaining the license would really be a profitable investment. As an example, we cited the case of another of our Clients, a chain of supermarkets, which also began to serve its own businesses with our help.
In order to be able to buy electricity and supply it to your company, it is necessary not only to get the said license but also to become a participant of the electricity market, which involves a separate procedure. We offered the Client full support of the entire procedure, including such important preparatory steps as:
Establishment of a separate company for obtaining a license;
Development of the electricity supplier’s website, which is a prerequisite for obtaining a license;
Training of personnel who will later operate in the electricity market.
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The procedure of obtaining an Electricity License and joining the electricity market for the real estate developer
Within a couple of days we prepared the constituent documents and registered the new company, at the same time preparing to obtain an Electricity Supply License. To do this we had to:
Prepare a package of documents (see here);
Develop a website of the company, which would fully comply with the requirements of the National Energy and Utilities Regulation Commission (NEURC) (to check the requirements, click here).
We also needed to obtain the electronic digital signature for the company for further work in the energy market, to register the status of the VAT payer, as the electricity was to be supplied to a legal entity — a VAT payer. We also executed financial guarantees for the electricity supplier. The whole preparation stage took us 3 days.
After that, we submitted the documents to the NEURC and obtained a ready license at the next commission. Then we could proceed to the process of registration as a participant of the electricity market.
Inclusion in the market involves the following procedures:
Obtaining the EIC code of type X, an identifying code in the electricity market;
Signing an agreement with Ukrenergo;
Connection to Oblenergo (one or several at your discretion);
Conclusion of the agreement with the Market Operator;
Registration on the Ukrainian Energy Exchange.
Please note! The electricity market consists of separate segments that function according to their own rules. A supplier does not have to register in all of them. We advised our Client on further work in the market and on the segments he had to register and work with.
The whole procedure from the start of registration to full market entry takes 2-4 months, depending on the situation. This period can be reduced if you buy a ready-made company with an Electricity Supply License.
If you want to get real practical assistance with a guaranteed result for your business — don’t hesitate to contact us. We will take care of a successful start and development of your business.
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