Successful experience of obtaining by our firm a turn-key ready license for the supply of electricity and natural gas

The less time is left before the launch of the new electricity market, the more private companies want to try doing business in this sector of the economy.

The first and one of the most important steps required to be taken for operating in the electricity market is to obtain a license for electricity supply or resale (trading) activities. We have separated these two licenses, because despite their similar name and nature, they have one significant difference: the license for resale (trading) of electricity does not allow you to supply electricity to the consumer.

Our service: License For Electricity Resale (Trading Activity).

The procedure for obtaining the license for the natural gas supply to the consumer is also identified separately, since there are some specific requirements to be met when obtaining this license.

We will elaborate on the differences in obtaining licenses for the gas and electricity supply in terms of our practical experience.

The case

In April, we were contacted by a Client from the city of Sumy who was interested in obtaining the Electricity Supply License.

However, before applying for the License, the Client wanted to learn more about the licensing procedure and decided first to take legal advice on this issue.

During the consultations, it turned out that the Client also intended to obtain the Gas Supply License, but he wanted first to understand the procedure and peculiarities of obtaining both types of licenses.

We explained that in practice, the procedures for licensing gas and electricity supply services are similar, but each procedure has its own peculiarities. In fact, the applicant shall submit the same package of documents for obtaining both licenses. So what is the difference?

Difference between the procedures for obtaining licenses for the electricity and gas supply 

First, you can note differences, when creating a website, which is a mandatory condition for obtaining both licenses, since it is one of the means of carrying out relevant activities.

It should be understood that:

  • Conditions of supply,
  • Rights and obligations of the Supplier and the Consumer, 
  • Legal and regulatory framework

are different and this shall be clearly reflected on the company’s website.  

Note! Non-compliance of the website with the license requirements can result in refusal to grant a license. Thus, the applicant should pay special attention to the website design.

Related article: Obligatory Site Requirements For Obtaining A License For Gas Or Electricity Supply

In order to obtain both licenses, the applicant shall specify the actual means of communication with consumers both in the documents submitted and on the company’s website. Furthermore, these means of communication must be valid and up to date.

There were cases when the National Energy and Utilities Regulatory Commission (NEURC) refused to grant a supply license to companies because the company representatives did not answer the phone calls and texts of the licensing authority. 

Our case-related actions

After the consultations, the Client realised that he wanted to obtain both licences: for the supply of electricity to the consumer and for the supply of natural gas. In general, as our practical experience shows, it is often feasible and advantageous to obtain the Gas Supply License coupled with the Electricity Supply License.

It was important for the Client to contract one company that could obtain both licenses on a turnkey basis, as well as create a website and obtain a paper confirmation of the licenses issue. 

Related article: Ensured Full Legal Support Of Client’s Entry Onto The Electricity Wholesale Market of Ukraine From Scratch

The results the Client received by cooperating with our company

  • Qualified consultation on the procedure and peculiarities of obtaining the licenses for gas and electricity supply to consumers;
  • A website developed in full compliance with the licensing requirements;
  • A full set of documents prepared for signing and submitting to the licensing authority;
  • The license for the electricity and natural gas supply and a paper confirmation of the licensing authority on the issue of the abovementioned licenses to the Client’s company (just in 2 weeks of initial contact from the Client). 

If you are interested in obtaining licenses in the energy sector, please don’t hesitate to contact our company for qualified advice and legal support for obtaining licenses on a turnkey basis. 

Publication date: 19/06/2019

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