President signs law that brings integration of Ukraine’s energy system into EU market
On May 12, President Zelensky signed the Law of Ukraine ‘On amending certain legislative acts of Ukraine regarding certification of transmission system operator’ (No. 1396-ІХ), which was approved by the Verkhovna Rada on April 15, 2021.
“The adoption of this document will contribute to the implementation of Ukraine's international obligations on the implementation of the European Union’s Third Energy Package. In particular, the law will provide for the possibility of certification of transmission system operator (TSO) under the model of separation of independent system operator (ISO). This model envisages that such an operator uses property that ensures the integrity of the unified energy system of Ukraine, while this property remains the property of the state,” reads the report.
According to the document, the transmission system operator is a legal entity (joint stock company) responsible for safe, reliable and efficient operation and development of the distribution system, which has received a license for electricity transmission activities. The transmission system operator can be not only the owner of the transmission system, as now, but also an entity whose 100% corporate rights belong to the state or a state-owned company.
"The owner of the transmission system should not have the right to manage or control economic entities that generate or supply electricity and be engaged in trading activities," reads the report.
Only the ministry authorized by the government of Ukraine can manage state-owned facilities used for the transmission of electricity.
According to the document, “the government is deprived of the authority to terminate the rights of economic management of state property used in the process of conducting electricity transmission activities. As well as the power to repeal acts of ministries and other central executive bodies issued within the management of economic entities that carry out the transmission of electricity”.
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