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.
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Report name
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Issued recommendations
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Execution status
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Systemic report "Natural monopolies vs. competitive business: how to improve relations" |
To develop the legal framework for establishing the authority of local government agencies and the procedure for determining the priority of contracts for the purchase of heat energy, should two or more heating supply companies be connected to the heating network. Ministry of Regional Development, Construction and Residential Services |
In process
— comments:
Article 21 of the Law of Ukraine "On heat supply" sets forth the conditions for the increase of competition in the heat energy market and establishes basic principles of such competition, which, however, were not further developed. In particular, the procedure for conducting tenders for prioritizing conclusion of the heat energy purchase contracts, should two or more heating supply companies be connected to the heating network, is not currently developed or approved.
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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 |
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
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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 |
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.
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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 |
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.
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To draft amendments to the respective asset valuation methodology to improve the base for assessing and verifying results.
National Energy and Utilities Regulatory Commission |
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”.
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