On February 13, 2020, the Energy Community Secretariat published its Opinion on the Ukrainian Regulator’s draft certification decision on Ukrenergo, the Ukrainian transmission system operator.

In its Opinion, the Secretariat takes the view that Ukrenergo does not own the electricity transmission assets as required by Article 9(1) of the Electricity Directive, and does not enjoy and exercise rights over them equivalent to an owner. Compliance with Article 9(1)(a) of the Electricity Directive is a fundamental prerequisite for certification. Therefore, the TSO cannot be certified under the ownership unbundling model.

NEURC is to adopt a final certification decision within two months, taking utmost account of the Opinion of the Secretariat.

Energy Community Secretariat Director, Janez Kopac, has previously warned that Ukrenergo’s certification is in jeopardy due to controversy in Ukrainian legislation. Successful company certification depends on the choice of an unbundling model – ownership model (OU) or independent system operator (ISO) model.

Currently, the Law on the Electricity Market provides that there should be an ownership (OU) model of unbundling. At the same time, according to the law on privatization, Ukrenergo only owns the objects of the transmission system on the right of economic management, which does not meet the specified standards. Kopac proposed to amend the law “On the Electricity Market”, which will regulate this issue and allow timely certification. For example, allow ISO-based model.

Recall that Ukrenergo certification is a condition for synchronization with ENTSO-E.

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