THE RESOLUTION OF THE NATIONAL COMMISSION PERFORMING STATE REGULATION IN THE FIELD OF POWER AND UTILITIES OF UKRAINE

of February 11, 2020 No. 370

About approval of Changes in some resolutions of NKREKP

According to Articles 4, 32 and 33 Laws of Ukraine "About the natural gas market" and article 17 of the Law of Ukraine "About the National commission performing state regulation in spheres of power and utilities" the National commission performing state regulation in spheres of power and utilities DECIDES:

1. Approve Changes in the Code of gas-transport system approved by the resolution of the National commission performing state regulation in spheres of power and utilities of September 30, 2015 No. 2493, registered in the Ministry of Justice of Ukraine on November 06, 2015 for No. 1378/27823, which are applied.

2. Approve Changes in the Standard agreement of transportation of natural gas approved by the resolution of the National commission performing state regulation in spheres of power and utilities of September 30, 2015 No. 2497, registered in the Ministry of Justice of Ukraine on November 06, 2015 for No. 1383/27828, which are applied.

3. Approve Changes in the Technique of determination and calculation of rates for transportation services of natural gas for points of entry and points of exit on the basis of the long-term stimulating regulation approved by the resolution of the National commission performing state regulation in spheres of power and utilities of September 30, 2015 No. 2517, registered in the Ministry of Justice of Ukraine on November 06, 2015 for No. 1388/27833, which are applied.

4. Distribution of capacity for the periods of gas 2019/2020 is performed according to provisions of the Code of gas-transport system in the edition operating about day of entry into force of this resolution.

5. This resolution becomes effective from the date of, its promulgation following behind day on the official website of the National commission performing state regulation in spheres of power and utilities.

Approved by the Resolution of the National commission performing state regulation in spheres of power and utilities of Ukraine of February 11, 2020 No. 370

Changes in the Code of gas-transport system

1. In the Section I:

1) in Item 5 of Chapter 1:

the seventeenth to exclude the paragraph.

With respect thereto the eighteenth - the ninety ninth to consider paragraphs respectively paragraphs the seventeenth - the ninety eighth;

in the paragraph the seventeenth to exclude the words "or it is not realized by the customer of transportation services according to the transportation agreement of natural gas";

after the paragraph of the thirty seventh to add with new paragraphs the thirty eighth and thirty ninth the following content:

"additional capacity - capacity of gas-transport system which can be in addition divided on the guaranteed basis as a result of the taken measures for settlement of contractual overloads;

the economic test - the test applied to assessment of economic feasibility of projects implementation of the new (increased) capacity;".

With respect thereto paragraphs of the thirty eighth - to consider the ninety eighth respectively paragraphs the fortieth - the 100-th;

after the paragraph of the fifty second to add with the new paragraph of such content:

"the mechanism of alternative distribution of capacity - the mechanism of distribution of level of the offer or the new (increased) capacity developed for each separate case by the operator of gas-transport system and approved by the Regulator for placement of requests for conditional demand for capacity;".

With respect thereto fifty third - the 100-th to consider paragraphs respectively paragraphs the fifty fourth - the hundred first;

after the paragraph of the fifty ninth to add with the new paragraph of such content:

"the new (increased) capacity - possible future increase in technical capacity by means of market procedures or creation of new capacity in case of absence sufficient the existing capacity which can be offered on the basis of investment into physical infrastructure or long-term optimization of capacity utilization and afterwards distributed on condition of positive economic test result, in the following cases:

1) on the existing points of interstate connection;

2) by creation of new point or points of interstate connection;

3) as capacity of physical reverse flow in point or points of interstate connection which was not offered for the procedure of distribution earlier;".

With respect thereto the sixtieth - the hundred first to consider paragraphs respectively paragraphs the sixty first - the hundred second;

after the paragraph of the sixty first to add with the new paragraph of such content:

"the integrated capacity - the guaranteed capacity which consists of capacity on entrance and exit on both sides of each point of interstate connection of two adjacent gas-transport systems;".

With respect thereto paragraphs of the sixty second - to consider the hundred second respectively paragraphs sixty third - hundred third;

after the paragraph of the sixty sixth to add with the new paragraph of such content:

"transfer of capacity - alienation of right of access to capacity by one customer of transportation services and acquisition of right of access to this capacity by other customer of transportation services within gas-transport system".

With respect thereto paragraphs of the sixty seventh - to consider hundred third respectively paragraphs the sixty eighth - the hundred fourth;

after the paragraph of the seventy eighth to add with new paragraphs the seventy ninth and eightieth the following content:

"the project of the new (increased) capacity - the project of increase in amount of technical capacity in the existing point of interstate connection or creation of new point of interstate connection on the basis of distribution of capacity in the procedure of the new (increased) capacity;

the procedure of the new (increased) capacity - process of assessment of market demand for the new (increased) capacity which includes additional stage at which customers of transportation services state and is quantitatively determined by the demand for the new (increased) capacity, and obligatory stage at which the operator of gas-transport system establishes the requirement to customers of transportation services to reserve certain amount of capacity and to undertake obligation on payment for use of such capacity;".

With respect thereto the seventy ninth - the hundred fourth to consider paragraphs respectively paragraphs the eighty first - the hundred sixth;

after the paragraph of the eighty fifth to add with the new paragraph of such content:

"offer level - the amount of free capacity and the corresponding amount of the new (increased) capacity, offered for each annual capacity in point of interstate connection;".

With respect thereto paragraphs of the eighty sixth - to consider the hundred sixth respectively paragraphs the eighty seventh - the hundred seventh;

to add the paragraph of the ninety second after the words "established by the Regulator" with symbols, words and sign" (taking into account coefficient which considers the period and season the order of capacity)";

to add the paragraph of "gas-transport system", the hundred second after words, with the words "during the actual transportation of natural gas at a given time";

after the paragraph of the hundred second to add with the new paragraph of such content:

"f-factor - share of current value of the expected increase in the necessary income of the operator of gas-transport system (connected with increase in capacity, included in appropriate level of the offer) which needs to be covered at the expense of current value of obligations of customers of the transportation services on acquisition of capacity determined according to Chapter 6 of the Section XIX of this Code;".

With respect thereto hundred third - the hundred seventh to consider paragraphs respectively paragraphs the hundred fourth - the hundred eighth;

2) in Item 8 of Chapter 3 of the word "taking into account requirements of this Code" shall be replaced with words, symbols and figures "according to requirements of this Code and the Regulations of the Commission (EU) No. 2015/703 of April 30, 2015 which enters the code of networks concerning rules of interaction and data exchange".

2. In the Section IV:

1) in Item 1 of Chapter 1 of the word "about interaction which provisions cannot contradict provisions of this Code" shall be replaced with words, symbols and figures "the prisoner according to requirements of this Code and the Regulations of the Commission (EU) No. 2015/703 of April 30, 2015 which enters the code of networks concerning rules of interaction and data exchange";

 Paragraph two of Item 6 of Chapter 3 after words of "certain amounts of natural gas" to add 2) with words and symbols "and/or rights to use by the distributed (contractual) capacity".

3.  To add Item 3 of Chapter 2 of the Section VIII after the paragraph of the nineteenth with the new paragraph of such content:

"In case of change of the licensee which performs functions of the operator of gas-transport system the new licensee shall perform determination of the amount of sufficient financial provision of the customer of transportation services taking into account information concerning cases of delay by such customers of transportation services of payment of monetary commitments before the previous licensee.".

With respect thereto the twentieth - the thirty first to consider paragraphs respectively paragraphs the twenty first - the thirty second.

4. In the Section IX:

1) in Chapter 1:

 add Item 2 with the new subitem of such content:

"5) within a day - capacity of certain amount which is available since certain time within gas days and until the termination of gas days with permanent flow. At the same time capacity unit of measure within a day – one thousand cubic m/days.";

in Item 3:

the paragraph one after the words "for the days ahead" to add with sign and words ", within a day";

the second offer of paragraph two of item 4 to exclude;

Items 13 - 15 to replace with one Item 13 of the following content:

"13. Capacity of points of input and output on interstate connections in case of the order of the guaranteed and/or intermittent capacities is provided to the customer of transportation services according to requirements of the Section XIX of this Code.".

With respect thereto Items 16 - 20 to consider respectively Items 14 - 18;

exclude Item 18;

 Items 3 - the 5th Chapter 2 to replace 2) with new Items 3 and 4 of the following content:

"3. The operator of gas-transport system determines amount of free capacity on points of entry and points of exit taking into account capacities which were provided within the procedure of distribution of capacity.

4. Distribution of capacity is performed under following conditions:

in case of annual periods - for any fifteen (15) the gas years following after gas year in which there was capacity distribution;

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