GTSOU received consent from the regulator to appoint a controller

GTS Operator of Ukraine received approvals from NEURC regarding the appointment of an independent controller of GTSOU on the basis of the decision of the sole participant of the Company, the press service reports.

“Appointment of a controller is another important step for building an independent, but accountable to the public, operator of the GTS and is a step towards bringing the Ukrainian operator closer to the standards of the European market. We are glad that this step will be taken soon and an independent arbiter will appear who will monitor the attitude of GTSOU towards market participants. This is the logic that the legislators put in when preparing the Law of Ukraine "On the Natural Gas Market," noted Olha Belkova, Director for Relations with Government Bodies and International Organizations, GTSOU.

The company noted that in world practice, the tool of introducing an independent controller to avoid pressure from third parties on the operators of the GTS is used. It can be a natural or legal person. Ukrainian legislation allows the supervisory board or, if absent, the collegial executive body of the OGTSU to appoint a controller. However, since OGTSU does not have a supervisory board or collegial executive body (i.e. directorate), and the sole general director is the governing body, GTSOU turned to NEURC with a corresponding question about possible ways to appoint a controller.

The functions of the controller include monitoring and reporting to the Ukrainian and European regulators – that is, NEURCU and the Secretariat of the Energy Community – on the compliance by the Ukrainian GTS Operator of the compliance program on equal treatment of all gas market participants or on any discrimination or violation by the GTSOU relation to some of the participants.

To date, GTSOU is finalizing the compliance program after the comments and suggestions provided by the Regulator.

Tags: The Cabinet of Ministers, gas, Naftogaz, contracts, hydrocarbon production, tariffs, legislation, NEURC, EU, The European Commission, energy market, gas transit, foreign affairs, unbundling, Gas market, облгаз, law, negotiations, investments, pipeline, price, agreement, route, gas supplies, volumes, modernization, The National Energy and Utilities the Natuonal Regulatory Commission, Makohon, OGTSU, infrastructure, energy sector, natural gas, The Ministry of Energy, economy, market, gas production, gas transmission system, supplier, consumers

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