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Successful experience of a “turn-key ready” registration of electricity supplier as the electricity market participant

Although the new electricity market has been operating for more than a month, the registration of new market participants and consultations in this regard is still one of the most popular services provided by our company.

This can be easily explained by the fact that most of the companies that have appropriate licenses decided to start operating in the electricity market only after its launch. Moreover, the very process of the new market operation raises many question.

This publication will reveal our practical experience related to the registration of the electricity suppliers as the electricity market participants on a turn-key basis.

Related article: Registration of the Supplier on the New (Wholesale) Electricity Market: The Procedure and Necessary Steps

Case 

In July 2019, we were contacted by a Client who had a number of companies in Ukraine (supermarkets). He intended to independently supply electricity to his companies without spending extra money on the electricity suppliers. 

Service Delivery Procedure

  • The first step was to register the company, which was supposed to act as a supplier of electricity to the other Client’s companies.

At this stage, the company shall be registered with a VAT payer status. This will allow not waiting for another month. The application for registration of a VAT payer shall be submitted by the tenth (10th) day of the calendar month, so that the company could be included in the register of VAT payers in the month of the application submission.

  • The next step was to obtain a license for electricity supply.

At this stage, we have not only prepared all the necessary documents for obtaining the license, but also developed a website, which is required for obtaining a license.

Related article: Obligatory Site Requirements For Obtaining a License For Supplying Gas Or Electricity

  • After obtaining the license, our lawyers promptly registered the Client’s company, for which the license was obtained, as an electricity market participant and ensured signing of all necessary agreements with the Transmission System Operator (TSO).
  • On the sideline of registering company as an electricity market participant, we also provided the Client with legal support for joining the local electricity distribution companies (Oblenergo) in the territory, where the Client intended to supply electricity.
  • The final step was to ensure the inclusion of the Client’s company in the day-ahead and intra-day markets, as well as to register it as an electronic auctions participant on the Ukrainian Energy Exchange that will allow the Client to buy electricity at the most favourable prices and condition. 

Results

As a result, a little more than in a month, the Client was able to supply electricity to his enterprises through his own electricity supply company, which:

  • had the appropriate license for electricity supply;
  • was included in the Register of the electricity market participants;
  • signed all necessary agreements with the Transmission System Operator, local power distribution company (Oblenergo), Market Operator SE, Ukrainian Energy Exchange;
  • was able to buy electricity on three electricity markets under various terms and conditions and at competitive prices.

If you want to start operating in the Ukrainian electricity market, don’t hesitate to contact us. Our specialists will provide you with a legal advice in this regard and agree on all the details of cooperation, pertaining to the obtainment of the license and subsequent registration of the your company as an electricity market participant.

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