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The Business Ombudsman Council provides recommendations to state bodies on the basis of individual cases and in accordance with published systemic reports. Here we have collected information on the implementation status of systemic recommendations only.

Report name
Issued recommendations
Execution status

Systemic report "Natural monopolies vs. competitive business: how to improve relations"

To oblige operators of engineering network system to publish technological requirements for hook-ups and warehouse facilities to facilitate the implementation of investment programs.

National Energy and Utilities Regulatory Commission

In process
— comments: According to the information provided by the NEURC, this requirement is currently established for gas transmission and gas distribution system operators due to the relevant provisions of the Code on Gas Transmission System, and the Code on Gas Distribution Systems.Also, in accordance with the clause 4.1.38 of the Code on Distribution Systems, the DSO shall publish and update all necessary information on their official websites and bear responsibility for timely disclosure of information and its authenticity. However, current legislation does not oblige operators of other engineering network systems (heat, water supply and sewage) to publish information on technological requirements for hook-up to networks.
To require licensees to disclose all consumer applications to hook up and their status, etc.

National Energy and Utilities Regulatory Commission

In process
— comments: According to the information provided by the NEURC, starting from 11 December 2017 applicants for hook-up services provision can monitor online the detailed flow of events concerning the organizational and technical measures that are carried out by the electricity transmission company in order to provide the hooking-up service. Operation of the personal online cabinet is regulated by the paragraph 4.9 of the Code on Distribution Systems. At the same time, this requirement is not implemented in relation to other engineering network systems (gas, heat, water supply and sewage).
To develop a concept of switching to a fixed hook-up fee with due consideration of all required procedures, financial sources and stakeholders that relieves the customer from the obligation to seek Technical Specifications for getting hooked up.

National Energy and Utilities Regulatory Commission
Ministry of Regional Development, Construction and Residential Services

Implemented
— comments: There is a final (but not yet approved with the Energy Community) Draft Methodology (order) for the formation of the fee for hooking-up to transmission and distribution systems.Also, according to the clause 4.6.2 of the Code on Distribution Systems in the case of standard and non-standard “turnkey” hook-up, the development of design and appraisal documentation for the electrical installation of external power supply is carried out by the DSO (and includes an input device with a switching device).Meanwhile, the technical specifications contain requirements for engineering maintenance in the customer's networks and, accordingly, the design and construction thereof shall be ensured by the Customer; the terms of reference (technical task) contain the requirements for engineering maintenance in the DSO networks and, accordingly, their design and construction shall be carried out by the DSO
To take into account all possible sources of funding (for modernization) in order to establish fair hooking-up fee.

National Energy and Utilities Regulatory Commission
Ministry of Regional Development, Construction and Residential Services

Implemented
— comments: There is a final (but not yet approved with the Energy Community) Draft Methodology (order) for the formation of the fee for hooking-up to transmission and distribution systems.
To develop clear parameters of hooking-up fee calculation.

National Energy and Utilities Regulatory Commission
Ministry of Regional Development, Construction and Residential Services

Implemented
— comments: In May 2017 the NEURC has developed and provided on its website an Estimated Cost Calculator for the standard hook-up service: http://www.nerc.gov.ua/?calc=ok Furthermore, the formula for calculating the fee for non-standard connection, contained in the Draft Methodology (order) for the formation of the hooking-up fee for the transmission and distribution systems, allows to calculate the cost of such a hook-up in advance

To hold additional public hearings while preparing a Draft Law "On amending certain legislative acts regarding the hooking-up fees..." to consider issues that arise when the customer's facilities are being hooked up to power grids and to discuss in detail possible ways to regulate them through legislation, including issues of greater access to information on the network conditions, available capacities, open register of hook-ups, etc.

National Energy and Utilities Regulatory Commission

Recommendation is no longer relevant
— comments: To date, the issue of broadening access to information on the state of networks and available capacity, keeping record of the hook-up register has not been regulated at the legislative level yet.

To improve the monitoring of compliance with license conditions in the power supply field.

National Energy and Utilities Regulatory Commission

Implemented
— comments: By the Resolution of NEURC of 14 June 2018 No.428 the Procedure is approved for monitoring compliance by licensees operating in the spheres of energy and utilities, legislation in the relevant areas and licensing conditions.

To adopt the Procedure for monitoring the compliance of licensees with licensing conditions in order to improve the control measures in the fields of heat energy supply and production, its transportation by the main and local (distribution) heat networks.

National Energy and Utilities Regulatory Commission

Implemented
— comments: By the Resolution of NEURC of 14 June 2018 No.428 the Procedure is approved for monitoring compliance by licensees operating in the spheres of energy and utilities, legislation in the relevant areas and licensing conditions.

To regularly analyse the customers' complaints about the services, especially the issue of hooking up to the heating network, and to use the appropriate disciplinary measures under the results of such consideration.

National Energy and Utilities Regulatory Commission

Implemented

To perform permanent explanatory activities aimed at informing the licensees on elimination of the revealed monopoly abuses.

National Energy and Utilities Regulatory Commission
Antimonopoly Committee of Ukraine

Implemented
— comments: As reported to the Council by the NEURC, when considering the complaints lodged by the individuals and/or legal entities, carrying out state supervision (control) measures, the latter conducts explanatory work with the licensees to prevent any abuse of their monopoly position (compliance with the relevant licensing conditions). Also on 29 September 2016 the Memorandum on strengthening cooperation in electricity and natural gas markets and in the fields of heat-, water supply and sewage between the AMCU and the NEURC was signed: http://www.amc.gov.ua/amku/control/main/uk/publish/article/130144;jses sionid=847042A438B05A2E8334164C53780D1B.app1 However, the Council is not aware of the nature, frequency, and efficiency of measures taken by the NEURC, jointly with the AMCU within the framework of the Memorandum implementation.
To hold consultations with licensees, experts and the public on issues regarding hooking-up of producers and consumers to heating networks and ways to resolve them.

National Energy and Utilities Regulatory Commission
Ministry of Regional Development, Construction and Residential Services
Antimonopoly Committee of Ukraine

In process
— comments: The NEURC in cooperation with the consultants of the USAID Municipal Energy Reform is working on drafting relevant regulatory documents for hooking up to centralized heating supply system. Within the framework of this USAID project, the NEURC’s specialists are members of a working group on the development of the procedure (methodology) for hooking up to heat networks, calculation of the hooking-up fee and financing of hook-up services, etc. The said procedures (methods) are not yet approved and therefore relevant consultations should continue to be carried out, if necessary
To renew the rules for connecting to water supply and sewage systems so that they regulate, among others, the issue of providing/receiving Technical Specifications, establishing the hooking-up fees for the water supply and sewage networks based on a formula using the costs of the works and services needed at various stages in this process.The new rules should clearly define “access” and “connection/hook-up” as well as contain norms that regulate a number of issues related to:issuing and receiving hook-up permission;drawing up construction blueprints showing the water and sewage connections;providing and receiving Technical Specifications, which includes establishing the order or methodology for formulating the value of specification issuing services;establishing the procedure for paying for a hook-up that includes the value of works and services at various stages of this process, including works and services related to hooking up to water supply and sewage networks;determining the equity contribution, with th s intention of preventing cases where customers are pressured under the guise of an equity contribution to buy materials and/or to carry out certain works on behalf of the provider that are not directly related to the procedure of hooking up ordered by the customer;covering temporary connections;launching networks for further transporting of water resources;changing ownership to prevent abuse and setting excessive installation requirements.

National Energy and Utilities Regulatory Commission
Ministry of Regional Development, Construction and Residential Services

In process
— comments: According to the information provided by the NEURC and the Ministry of Regional Development, Construction and Residential Services, the latter is currently working on amendments to the Rules for the use of centralized municipal water supply and sewage systems in settlements of Ukraine, in particular, to regulate the issue of specifications for hooking-up to centralized water supply and sewage systems. The relevant task is included in the Plan of applied scientific and technical developments in the priority areas of activity in the spheres of construction, housing and communal services and regional development of the Ministry of Regional Development, Construction and Residential Services in 2017. To date, the relevant changes have not been developed and approved.
To make the necessary adjustments so that the hooking-up fee for the gas networks is calculated based on the fair price principle.

National Energy and Utilities Regulatory Commission

Implemented
— comments: At present, basic requirements and conditions for calculating the charge for hooking-up the customers’ objects to gas transmission or gas distribution systems are specified in the Methodology for setting the hooking-up fees for the gas transportation and gas distribution systems, approved by the NEURC on 24 December 2015 No.3054: http://zakon2.rada.gov.ua/laws/show/z0396-16 The provisions of the above Methodology provide for, in particular, the establishment of transparent and non-discriminatory conditions for determining the fee for standard/non-standard hook-ups, ensuring possibility of determining hook-up service cost at the stage of business planning, preventing abuses by GTS/GDS operators while determining the cost of services for hooking up such objects.
To adopt the procedure for agreeing the natural gas customer database with gas distribution companies.

National Energy and Utilities Regulatory Commission

Implemented
— comments: The NEURC's Resolution "On Approving of the Amendments to certain Resolutions of the NEURC regarding the implementation of daily balancing in the natural gas market and procedures for the development, submission and approval of the plan for the development of the gas transportation system for the next 10 years", dated 27 December 2017 No.1437, envisages, in particular, the procedure for the formation of a supplier Register of Consumers, which shall operate on the information platform of the gas operator:
To develop a plan for the switch from cost-plus rate setting to RAB methodology for power and gas companies and implement all the necessary measures to ensure incentive-based rate setting in centralized heating, water and sewage services.

National Energy and Utilities Regulatory Commission
Ministry of Regional Development, Construction and Residential Services

In process
— comments: During 2015-2017, the NEURC has developed a regulatory framework for implementation of incentive management in the fields of energy and utilities, namely power transmission, power distribution field, heat- water supply and sewage. Thus, the Council is currently attempting to identify areas in which the concept of switching from "cost plus" rate setting methodology to RAB has not been yet developed and needs further regulatory settlement.
To draft amendments to the respective asset valuation methodology to improve the base for assessing and verifying results.

National Energy and Utilities Regulatory Commission
Ministry of Energy and Coal Industry
Ministry of Regional Development, Construction and Residential Services
State Property Fund of Ukraine

In process
— comments: The representatives of the NEURC, together with the SPFU representatives, participated in the working group on development of amendments to the Methodology for valuation of assets of natural monopolies entities, business entities on adjacent markets in the field of combined production of power and heat energy, approved by the SPFU Order No.293, dated 12 March 2013. Based on Working Group joint work results and cooperation with the USAID Project consultants, the changes were prepared for consideration and proposals, as well as sent for the SPFU’s consideration by the letter No.1510/18/7-17 dated 13 February 2017. Preparatory work for introduction of incentive management in the field of heat supply with respect to development of aggregate cost of reproduction value, which shall be attached to the Methodology, is carried out directly by the participants of the pilot project, namely PJSC "Kyivenergo" and PJSC "Oblteplocomunenergo" in Chernihiv with the participation of the State Enterprise "Scientific - Research institute of Building Production”.

To provide a training program for both the staff and licensees on the RAB methodology application.

National Energy and Utilities Regulatory Commission

Recommendation is no longer relevant
— comments: Educational activities for the NEURC staff and licensees in the spheres of water-, heat supply and sewage (i.e. training programs, workshops, seminars) are being conducted within the frameworks of the USAID Municipal Energy Reform Program in Ukraine (MERP) that is implemented in accordance with the annual working plans.

To ensure implementation of the Law "On the specifics of access to information in power and natural gas supply, centralized hot water, centralized drinking water and sewage services".

National Energy and Utilities Regulatory Commission
Regional State Administrations
Municipal Executive Authorities

Implemented
— comments: According to the NEURC it has implemented the following actions: all the data, specified in the Part 1 of Article 1 of the Law of Ukraine "On the specifics of access to information in power and natural gas supply, centralized hot water, centralized drinking water and sewage services” is published on the NEURC’s official web-site, as required by Part 1 of Article 4 of the said Law; the NEURC’s Resolution No.464 dated 30 March 2017 "On annual provision of consumers with key information on services in the energy and utilities sectors" was adopted : http://zakon3.rada.gov.ua/laws/show/v0464874-17;in April 2017 an additional service was introduced - the informational telephone line 044-204-70-72 for corresponding services consumers;a series of information leaflets for consumers were prepared: http://www.nerc.gov.ua/?id=26426.At the same time, government agencies and local authorities, whose responsibilities includes setting of prices/fees for goods, services of natural monopolies, generally failed to ensure implemtation of the Law.

To improve tracking systems in the networks.

National Energy and Utilities Regulatory Commission

Implemented
— comments: On 14 March 2018, the NEURC approved the Commercial Electricity Accounting Code, which defines the principles of accounting, processes and procedures for ensuring the formation of data on the volume of produced, transmitted, distributed, consumed, imported and exported electricity.The principles of commercial accounting, including distribution services, for heat-, hot water-, centralized water supply and provision of relevant accounting information for such services consumers, are determined by the Law of Ukraine "On Commercial Accounting for Heat Energy and Water Supply", which became effective on 02 August 2017. Currently, the NEURC, within its competence and in pursuance of Clause 7, Section IV "Final and Transitional Provisions" of the said Law, improves the legal framework in line with the requirements of the current Law.

To develop service quality indicators and classify them accordingly, as well as to develop control monitoring and enforcement systems.

National Energy and Utilities Regulatory Commission

Implemented
— comments: The monitoring of quality indicators of power supply services was introduced by the NEURC in 2006 and is currently being implemented in accordance with its Resolution, dated 23 March 2017 No.345: http://zakon.rada.gov.ua/laws/show/v0345874-17 In accordance with the NEURC’s Resolution, dated 31 May 2017 No.714, which came into force on 09 October 2017, monitoring of quality indicators for power transmission - NEC "Ukrenergo": http://zakon5.rada.gov.ua/laws/show/v0714874-17 is being implemented.In water supply and sewage sphere, service quality indicators monitoring was introduced with the adoption of the NEURC’s Resolution, dated 23 February 2017 No.226, which came into force on 23 August 2017: http://zakon5.rada.gov.ua/laws/show/v0226874-17 In natural gas supply sphere, monitoring of commercial services quality indicators is carried out in accordance with the NEURC’s Resolution No.1156, dated 21 September 2017, which came into force on 10 August 2017: http: //zakon3.rada .gov.ua /laws/ show/v1156874-17 Besides this, the NEURC develops quality indicators for heat supply services reporting forms. Control over compliance with quality of service indicators is exercised during control of compliance of the licensees with the legislation and licensing terms and conditions.

To design the procedure for overseeing that licensees uphold the terms of their licenses to do business in all areas of operation: power, water, heat and gas distribution.

National Energy and Utilities Regulatory Commission

Implemented
— comments: By the Resolution of NEURC of 14 June 2018 No.428 the Procedure is approved for monitoring compliance by licensees operating in the spheres of energy and utilities, legislation in the relevant areas and licensing conditions.
To develop a mechanism for interlinking rate levels and quality of service.

National Energy and Utilities Regulatory Commission

Implemented
— comments: The mechanism of interdependence between the fee levels and quality of services is taken into account in the transition to the incentive-based fee setting and is provided for power distribution companies natural gas distribution and gas supply companies, in the fields of water and heat supply by a number of NEURC's resolutions.
To strength the powers of the regulator and sanctions against natural monopolies.

National Energy and Utilities Regulatory Commission

Implemented
— comments: On 22 September 2016 the Law of Ukraine "On the National Energy and Utilities Regulatory Commission" was adopted, Article 17 of which clearly specifies the NEURC’s powers. The Law provides for the implementation of state control in energy and utilities markets (Article 19), liability for violations of legislation in the areas of energy and utilities (Article 22): http://zakon.rada.gov.ua/go/1540- 19th Thus, the Law strengthens the NEURC’s authority and provides tools for influencing unscrupulous service providers. Apart from that, with entering into force of the Law of Ukraine "On Electricity Market", the responsibility of service providers for violation of the legislation regulating functioning of electricity market has been strengthened.

To set up a single information system for the sector and a benchmarking system.

National Energy and Utilities Regulatory Commission

In process
— comments: As reported by the NEURC to the Council, the development and creation of an information system for collection of information from licensees is provided by the District Heating Regulatory Reform Support Program at the expense of the Swedish for International Cooperation and Development Agency (SIDA) Grant. However, the Council is not aware of the actions taken by the NEURC to create such a system.
To establish the requirement on service providers to present information about key indicators of their operations on their websites.

National Energy and Utilities Regulatory Commission
Regional State Administrations
Municipal Executive Authorities

In process
— comments: The requirements for the service providers to disclose main indicators of their activity on web pages are determined by the Law of Ukraine "On the specifics of access to information in power and natural gas supply, centralized hot water, centralized drinking water and sewage services", which was adopted by the Parliament on 10 December 2015. However, service providers mostly did not ensure implementation of the Law.

To improve responsiveness to complaints from customers.

National Energy and Utilities Regulatory Commission
Antimonopoly Committee of Ukraine

Implemented
— comments: On 31 August 2017, the NEURC's Draft Resolution "On Approving the rules for settlement of disputes arising between business entities operating in the spheres of energy and utilities" was published on its official website: http://www.nerc.gov. ua /? id = 27182

Systemic report "Getting access to electricity"

To file a hook-up application in electronic form as an option.

National Energy and Utilities Regulatory Commission

Implemented
— comments: In accordance with the clause 4.4.1 of the Code on Distribution Systems, a hook-up application, together with copies of documents attached thereto, shall be submitted by the Customer either in person or by registered mail, or electronically through the official website of the DSO (Distribution System’s Operator) via Internet with the use of electronic digital signature in accordance with the procedure established by law or using other electronic services offered by the DSO.

To simplify the requirements of the documentation on placement of the customer’s electrical facilities, which shall be attached to its hook-up application, excluding the necessity to attach the detailed replication from the topographical and geodetic plan at a scale of 1:2000 indicating the location of the power facility, land plot or planned connection point.

National Energy and Utilities Regulatory Commission

Implemented
— comments: In accordance with the clause 4.4.2 of Section 4.4 of the Code on Distribution Systems, only the general "replication from the topographical and geodetic plan or building plan indicating the location of the land" shall be attached to the hook-up applicati

To expand the ways of confirming the customer’s legal rights to its facility or a respective land plot on the basis of the extract from the Registry of Real Rights in Immovable Property, obtained via the e-service cabinet.

National Energy and Utilities Regulatory Commission

Implemented
— comments: In accordance with the clause 4.4.2 of Section 4.4 of the Code on Distribution Systems, either a copy of the document confirming the ownership or use of the respective object, or a copy of the extract from the Registry of Real Rights Over Immovable Property, or, in the absence of the respective object, a copy of the document confirming the ownership or use of the land plot or a copy of the extract from the Registry of Real Rights Over Immovable Property shall be attached to the hook-up application.

To move towards fixed rates for getting hooked up to electricity, with the cost calculation to be based on the quantity of power capacity declared by the customer. This transfers the requirement to prepare a project design to the power utility, which relieves the customer from the obligation to seek technical conditions for getting hooked-up to electricity from the utility company.

National Energy and Utilities Regulatory Commission

Implemented
— comments: On 18 December 2018, the NEURC by its Resolution No.1965 adopted the Methodology (order) for the formation of the fee for hooking-up to transmission and distribution systems.

Design documentation shall be prepared by the power utility without issuance of technical conditions to the customer

National Energy and Utilities Regulatory Commission

Implemented
— comments: According to the clause 4.6.2 of the Code on Distribution Systems in the case of standard and non-standard “turnkey” hook-up, the development of design and appraisal documentation for the electrical installation of external power supply is carried out by the DSO (and includes an input device with a switching device).Meanwhile, the technical specifications contain requirements for engineering maintenance in the customer's networks and, accordingly, the design and construction thereof shall be ensured by the Customer; the terms of reference (technical task) contain the requirements for engineering maintenance in the DSO networks and, accordingly, their design and construction shall be carried out by the DSO.

To simplify the process of approving project documentation by power utility with various third parties by establishing fixed terms for securing such approvals (with the cost calculated based upon the power capacity declared by the customer and implementation of a “silent (implied) consent” mechanism, including the liability of the power utility for any failure to observe such terms, calculated as a percentage of the total cost of getting hooked up, which should be reimbursed to the customer.

National Energy and Utilities Regulatory Commission

Implemented
— comments: Clauses 4.2.4, 4.3.3, 4.5.6 of the Code on Distribution Systems set forth as follows:Time limits for the preparation and issuance by the transmission organization of the draft hook-up agreement and the signed technical specifications, which are an integral part of the hook-up agreement (no later than 10 working days from the day of the customer's hook-up application regarding the electrical installation and 20 working days, if it is necessary to agree them);the deadlines for the provision of the standard connection service for the electrical installations of the first-to-third power levels (20-30 calendar days from the date of payment by the customer to the transmission organization of the hook-up fee in accordance with the hook-up agreement);the deadline for the provision of the non-standard hook-up service ("turnkey") (120-350 calendar days).The hook-up agreements, which are integral Annexes 1 and 3 to the Code on Distribution Systems, Section 5 thereof establishes the liability of the DSO in the event of the breach of its obligations under the hook-up agreement.

To hook up a customer’s power unit to power network pursuant to contract only (without filing a separate application).

National Energy and Utilities Regulatory Commission

Recommendation is no longer relevant
— comments: The new market suggests that the use of electric power is possible in the presence of two contracts, namely, the agreement on the power distribution, concluded between the supplier and the operator of the distribution system, as well as the agreement on the power supply, concluded between the supplier and the customer (business).

To change the moment of signing the supply agreement based on whichever of the following takes place later: commissioning the outside power supply unit or the customer putting its facility into operation.

National Energy and Utilities Regulatory Commission

Recommendation is no longer relevant
— comments: Due to the effect of "unbundling" rules, the owner of the utility networks (i.e. oblenergo) may not necessarily be a "power supply organization".

To streamline tender procedures conducted by natural monopolies through wider use of framework contracts.

National Energy and Utilities Regulatory Commission

In process
— comments: According to the information, received from the Ministry of Economy on 22 January 2019, in pursuance of Article 13 of the Law "On Public Procurement" - according to which the peculiarities of the conclusion and implementation of framework agreements are determined by the Authorized Agency, - the Ministry of Economy approved Order No.1372 of 15 September 2017 "On Approval of the Procedure for Concluding and Implementing Framework Agreements". The Council also received assurances that the administrator of the electronic procurement system carried out a technical implementation of the functional, which allows customers to procure procurement under framework agreements in accordance with the above Procedure.