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Legislation drafts/amendments Lugansk region

Complainee:  The Ministry of Energy and Environmental Protection of Ukraine 
Complaint in brief: An energy company from Luhansk approached the Council. The company complained that the Ministry of Energy and Environmental Protection had delayed bringing current legal framework in line with the requirements of the Law “On Electricity Market”. For this reason, the company could not directly receive payments from budgetary institutions for electricity consumed.
According to the novelties introduced by the Law, the energy company from Luhansk has begun conducting electricity distribution activities in 2019. Based on the license, the company supplied electricity not only to local power grids of Luhansk region, but also to hostilities territory. However, in connection therewith, the complainant bore an additional financial burden. The company additionally performed works and services within the scope of licensed activities and had to purchase new equipment from time to time as well as fuel and lubricants for power grids destroyed as a result of military actions.
Following a conference call with the former Ministry of Regional Development, Construction and Housing, Luhansk Regional State Administration submitted proposals for amendments to Resolution No.477, to the Ministry of Energy and Environmental Protection first and then to the Prime Minister himself. However, since the issue remained unresolved for the complainant, the Business Ombudsman Council сommenced the complaint’s investigation.
Actions taken: The investigator examined the case file and recognised the complaint as substantiated. The Council recommended that the Ministry of Energy and Environmental Protection amend the CMU Resolution No. 447 to enable the company to receive budget funds for electricity distribution services. In particular, to discuss the subject of complaint, the Council asked the Ministry of Energy and Environmental Protection to hold the tripartite working group meeting with participation of the Council’s investigator, the line ministry and the complainant. 
Result achieved: Thanks to the Council’s interference, on October 28, 2020, the Cabinet of Ministers adopted Resolution No.1028 “On Amendments to Resolution of the Cabinet of Ministers dated July 6, 2016 No. 447”. The complainant thanked the Council for assistance: “It is thanks to the assistance and perseverance of the Business Ombudsman Council that we are finally able to receive budget funds for electricity distribution services, additional works and licensed activities related services, as well as other payments (penalties, fines, etc.), provided by other regulations. It is difficult to overestimate the importance of your facilitation in solving a good deed, which actually warms our team, working in hostilities environment”. The case was successfully closed.

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