Ukrenergo wins appeal against DTEK in the case of payment of transmission tariff for electricity export

The Supreme Court of Ukraine recognized the NEURC Resolution No.360 of February 7, 2020, which clarified the norms of the Transmission System Code on the obligation to pay for transmission services when exporting electricity, as legal, the press service of Ukrenergo reports.

Earlier, DTEK Zakhidenergo LLC tried to appeal this document in court to cancel the need to pay the transmission tariff for export operations with electricity.

The previous decisions of the courts of the first and second instance, in this case, led to the fact that NPC Ukrenergo was temporarily deprived of the opportunity to collect fees for transmission services when exporting electricity.

The decision of the Supreme Court was made on September 8, 2021, as a result of satisfying the cassation complaints of NEURC and NPC Ukrenergo. The ruling of the court of the cassation instance comes into legal force from the date of its adoption and cannot be appealed.

The Supreme Court confirmed the arguments of NEURC and Ukrenergo that when exporting electricity, exporters actually receive electricity transmission services, that is, they physically use the networks of the transmission system operator (TSO). Therefore, the payment of the transmission tariff is exactly the payment for the services provided by the operator of the transmission system, and not a duty or additional payment. Accordingly, in case of non-payment of the tariff, NPC Ukrenergo, as TSO, does not receive compensation for the costs incurred by it for the maintenance of interstate power transmission lines.

The decision of the Supreme Court gives Ukrenergo grounds to recover from market participants the debt on payment of the transmission tariff for the export of electricity. Now the total amount of this debt is more than UAH 2 billion (including VAT).

Tags: DTEK, court, legislation, TPP, Ukrenergo, electricity market, export, Ukraine, transmission system operator, Europe

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