National Energy and Utilities Regulatory Commission (NEURC)

National Energy and Utilities Regulatory Commission (NEURC)

Ukraine

Sectors Regulated:

Electricity, Natural Gas, District Heating, Water, Wastewater
  •  19 Smolenskaya Str.
     03680 Kyiv, Ukraine 
  •  +380 44 204 4827
  •  box-at-nerc.gov.ua 
  •  www.nerc.gov.ua

Regulatory Authority General Information

  • Joined ERRA in 2000 (Founding Member)
  • Established in 1994

Responsibilities

  • Legal basis/ mandate
  • The Constitution of Ukraine and the Laws of Ukraine “On NEURC”, “On Electricity Market”, “On Natural Gas Market”, “On Natural Monopolies”, “On Heating”, “On Combined Heat and Electricity Generation  (Cogeneration) and Use of Waste Energy Potential”, “On Drinking Water and Drinking Water Supply”, “On Alternative Energy Sources”, “On Government Regulation of Utilities”, “On Licensing of Economic Activities”, “On Housing and Utility Services”, “On Commercial Accounting for Heat and Water Supply”, “On Special Provisions for Access to Information in the Areas of Electricity, Natural Gas, Heat Supply, Centralized Hot Water Supply, Centralized Drinking Water Supply and Sanitation”, acts of the President of Ukraine, acts of the Cabinet of Ministers of Ukraine and other laws and regulations of Ukraine.
  • Responsibilities
  • The Regulator shall be responsible for State regulation, monitoring and control of activities of economic entities in the sectors of energy and public utilities, in particular
    1) in the energy sector:
    – generation, transmission, distribution, supply of electricity;
    – activities to organize of purchase and sale of electricity on the market “day ahead” and the intraday market, ensuring the purchase of electricity at a “green” tariff, trading activities;
    – transmission, distribution, storage (injection, withdrawal), LNG facility services, supply of natural gas;
    – activities on transportation of oil, oil products and other substances by pipeline transport;
    2) in public utilities sector:
    – generation of thermal energy by heat generating facilities, including combined heat and power generating facilities, transmission thereof through main and local (distribution) heating networks, supply of thermal energy in volumes exceeding the thresholds set by the terms and conditions of carrying out the economic activity (licensing conditions);
    – activity in the sector of district water supply and sewage in volumes exceeding the thresholds set by the terms and conditions of carrying out the economic activity (licensing conditions).
  • Authorities
  • Independence: According Article 5 of the Law on the NEURC, when performing its functions and exercising its powers in accordance with the law, the Regulator shall act at its own discretion and independently of any other public authority, other governmental agency, local self-governing authorities, their officials and officers, economic entities, as well as political parties, civic associations, trade unions or their bodies, as well as other persons who limit the powers of members of the Regulator and officials of the Regulator, are illegal influence. Persons exerting illegal influence on the process of performing functions and exercising powers by the Regulator’s members and officials shall bear administrative and criminal responsibility under the law. The Regulator’s decisions shall not be subject to approval of any public authorities, except for cases provided for by the law. The Regulator’s decisions may be challenged only in court. Such challenge shall not suspend the execution thereof.
  • Appeal process: In a judicial procedure

Organisational Structure

  • Organigram
  • Organigram: NEURC Ukraine (2022)
  • Internal Structure
  • Appointment to the position of a commissioner shall be based on the results of open competitive selection, except for the cases provided by the Law on the NEURC. Commisioners of the Regulator are appointed to positions by order of the Cabinet of Ministers of Ukraine according results of competitive selection. The Chairperson of the Regulator shall be elected by commissioners of the Regulator by secret ballot for a two year term.
  • Working Employees
  • • Decision-Making Level: 6 (Chairman and 5 Commissioners)
  • • Total Number of Employees: 422
  • Budget
  • The Regulator shall be financed from the revenues of the special fund of the State Budget of Ukraine from the regulation charges to be paid by economic entities operating in the energy and public utilities sectors. These regulation charges shall be credited as revenues of the special fund of the State Budget of Ukraine, may not be seized, and shall be used for the intended purposes to finance the activities of the Regulator, its central and regional offices.

Annual Report