NEURC transfers the authority to regulate the activities of heat supply enterprises to the local level

Национальная комиссия, осуществляющая государственное регулирование в сфере энергетики и коммунальных услуг, сообщила, что в соответствии с Программой деятельности Кабинета Министров Украины, одним из направлений реализации цели по предоставлению качественных коммунальных услуг является передача полномочий по регулированию деятельности предприятий теплоснабжения – согласование инвестиционных программ и установления тарифов – с государственного уровня на уровень местных органов власти.

The National Energy and Utilities Regulatory Commission reported that in accordance with the Program of Activities of the Cabinet of Ministers of Ukraine, one of the directions for achieving the goal of providing high-quality utilities was the transfer of powers to regulate the activities of heat supply enterprises – agreeing on investment programs and setting tariffs – from the state level to the level of local authorities.

The Regulator developed a draft resolution "On approval of Amendments to the Licensing conditions for the implementation of economic activities in the field of heat supply", which was approved on June 9, 2021, at an open meeting.

The Cabinet of Ministers of Ukraine fixed its position on this issue by approving the draft Law of Ukraine "On Amendments to Certain Laws of Ukraine Regarding the Regulation of the Activities of Enterprises in the Spheres of Heat Supply, Centralized Water Supply and Wastewater Disposal", which was registered by the Verkhovna Rada of Ukraine on 13.10.2020 under No.4215.

The specified draft law, in particular, provides for the transfer of powers of NEURC in the field of heat supply, in addition to regulating the production of heat energy at combined heat and power plants, thermal power plants, nuclear power plants and cogeneration plants, to the local level. Thus, local authorities will set tariffs and approve development plans for such licensees.

In particular, 80 licensees (28 entities) engaged in the production, transportation and supply of heat energy are transferred. Earlier, within the framework of the Reform of Decentralization of Power in Ukraine, 623 such licensees were transferred to the local level.

The Regulator will monitor and control the work of all heat supply enterprises, including those that will be regulated at the local level, will continue to provide regulatory support for their activities.

To recap, NEURC is introducing monitoring to prevent fraud across the electricity market.