You are using an outdated browser. Please upgrade your browser to improve your experience.

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 develop amendments to the Law of Ukraine “On regulating Urban Development Activities” to encourage local governments to develop territorial and detailed zoning plans.

Ministry of Regional Development, Construction and Residential Services

Implemented
— comments: Implemented in a different way.

To develop amendments to the Law "On regulating urban development activities" regarding the cancellation of developer's equity contribution as an outdated mechanism that is applied in a non-transparent way and appears to be an indirect tax, which is forbidden by law.

Ministry of Regional Development, Construction and Residential Services

Implemented

To organize public hearings with business associations, experts and the community to come up with better instruments for territorial development on a transparent basis.

Ministry of Regional Development, Construction and Residential Services

Implemented
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 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 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 determine what is a "fair price" for the hooking-up service and prevent an abuse.

Antimonopoly Committee of Ukraine

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 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 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