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

of April 3, 2020 No. 763

About approval of Rules of management of restrictions and Procedure for distribution of handling capacity of interstate sections

(as amended on 30-09-2020)

According to the laws of Ukraine "About the market of electrical energy" and "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 Rules of management of restrictions which are attached.

2. Approve the Procedure for distribution of handling capacity of interstate sections which is applied.

3. Declare invalid the resolution of the National commission performing state regulation in spheres of power and utilities of March 28, 2017 No. 426 "About approval of the Procedure for holding electronic auctions on distribution of handling capacity of interstate power networks".

4. 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 except appendix 2 to Rules of management of restrictions, the Section III, Item 4.1.7 of Chapter 4.1 and Chapters 4.2 - 4.11 Section IV, the Section V, the Section VI, Chapter 7. 1, Item 7.2.3 of Chapter 7.2 and Chapter 7.3 of the Section VII, Items 8.4.3 and 8.4.4 of Chapter 8.4 of the Section VIII, Sections IX and X of the Procedure for distribution of handling capacity of interstate sections which become effective in 17 months from the date of entry into force of this resolution.

5. This resolution is effective is termless, except the Section XII of the Procedure for distribution of handling capacity of interstate sections which voids in 17 months from the date of entry into force of this resolution.

Chairman of NKREKP

V. Tarasyuk

Approved by the Resolution of the National commission performing state regulation in the sphere of power and utilities of Ukraine of April 3, 2020 No. 763

Rules of management of restrictions

1. General provisions

1.1. These Rules determine the procedure of management of restrictions, methods of management of restrictions, the procedure and rules of determination of structure of distribution of handling capacity, procedure for promulgation of information of rather handling capacity of interstate sections.

1.2. In these Rules terms are used in such values:

auction for distribution of access to handling capacity of interstate sections (further - auction) - system of the relations between participants of the market thanks to which participants of the market by results of auction perform transactions on distribution of handling capacity of interstate sections for implementation of export and/or import transactions with electrical energy according to requirements of the legislation;

auction zone - geographical zone within which participants of the market have opportunity to exchange electrical energy without distribution of handling capacity;

auction platform - the automated system by means of which electronic auctions are held and other procedures according to the Procedure for distribution of handling capacity of interstate sections approved by the resolution of NKREKP of 03.04.2020 No. 763 are performed (further - the Procedure);

auction office - the responsible operator of system of transfer on the corresponding section of auction zone and/or the distributor of handling capacity;

opening of the biddings - time and day determined by the schedule of auctions with which approach in auction office auction participation applications from participants of auction can arrive;

compensations - the means which are due to return to the owner of the physical right to transfer acquired by results of auction according to reduction size;

the owner of the physical right to transfer - the winner of auction or the receiver who acquired the rights and obligations concerning use of the physical right to transfer;

the schedule of auctions - the schedule according to which the annual, monthly and daily auctions are held;

Д - day during which access to handling capacity is provided;

daily product - the product (free handling capacity) determined by auction office which is offered for distribution at daily auctions which period of use is equal to one hour, expressed in megawatts (MW);

the agreement on access to handling capacity of interstate sections (interstate power networks of Ukraine) (further - the agreement on access) - the agreement which is signed between the participant of the market and auction office and determines conditions and procedure for provision of the physical right to transfer and is the agreement of accession;

the agreement on the organization of parallel work of the integrated power system of Ukraine with power supply systems (associations of power supply systems) of the adjacent countries (further - the agreement of rather parallel work) - the agreement signed by the operator of system of transfer with the next system operator (operators) who settles the organization of parallel work with power systems of the adjacent states;

closing of the biddings - time and day determined by the schedule of auctions with which approach the auction office stops to accept from the registered participants of the auction participation application;

the offered handling capacity - handling capacity of interstate sections which is offered for distribution at auction by auction office;

the registered participant - the participant of the market which signed the contract on access with auction office;

the auction participation application (further - the request) - the offer (offer), not revocable for the closing time of the biddings, of the registered participant given to auction office according to the procedure and the terms determined by Procedure for the purpose of acquisition of certain size of handling capacity of interstate sections at the corresponding price;

release - the right of the participant of the market acquired from the Regulator on the established procedure for receipt of the physical right to transfer without participation in auctions;

reduction of the distributed handling capacity of interstate section (further - reduction) - reduction of amount of the physical right to transfer because of emergence of situation in case of which the interstate section on which handling capacity is already distributed cannot accept all physical flows of the electric power for the purpose of implementation of export-import transactions by participants of the market because of impossibility of respect for operational safety of network;

the receiver of the physical right to transfer - the registered participant who on a contract basis acquires the physical right to transfer as a result of its transfer from the owner of such rights;

the winner of auction - the participant of auction which request is satisfied;

crossing - geographical boundary between auction zone and other contiguous auction zones;

the period of use of product - time and day of emergence of the physical right to transfer, and also time and day of the termination of the physical right to transfer;

the reducing period - number of calendar days and/or hours during the period of use of product during which handling capacity will be unavailable taking into account expected condition of network (that is planned maintenance, long-term breaks in power supply, etc.);

return of the physical right to transfer - the method of voluntary return by the owner of the physical right to transfer of the physical right to transfer which is available for it determined by Procedure;

the message - any information which directly or indirectly concerns the procedure of distribution or use of the physical right to transfer and officially goes auction office and the registered participants;

product - handling capacity which is offered for distribution at auctions by auction office;

escrow account - the account of conditional storage opened by the registered participant in the authorized bank determined by auction office for accumulation of means which will be used by auction office (beneficiary) for calculations for access to handling capacity of interstate sections;

market restriction - situation in case of which the export volume and/or import of the electric power for interface of the markets of electrical energy in the course of distribution of handling capacity of interstate sections was reduced because of insufficiency of amount of such handling capacity;

the annual product - the product determined by auction office for distribution at the annual auctions which period of use begins from the first day and comes to an end last afternoon of calendar year;

distribution of handling capacity - obtaining by the registered participants of auction of the physical right to transfer between auction zones;

the distributed handling capacity (further - RPS) - the handling capacity of interstate sections distributed by results of auction or transfer of the physical right to transfer on which the winner of auction acquired the physical right to transfer;

the distributor of handling capacity - the organization authorized by system operator(s) to carry out distribution of handling capacity between auction zones by holding auctions;

structural constraint - situation in case of which in system of transfer restriction is observed, unambiguously certain, predicted, territorially steady in time and often repeating in normal operating modes of the integrated power system of Ukraine or its separate parts;

the authorized person - person who according to requirements of the legislation has powers to represent the interests of the participant of the market or the registered participant and to make transactions from name and at the expense of the participant of the market;

the participant of auction - the participant who submitted the application;

physical restraint - situation in case of which the predicted and/or actual flows of electrical energy break thermal limits of network, stability of tension and limits of corner of vybeg of rotor of OES or its separate parts;

the physical right to transfer (further - FPP) - access to handling capacity of interstate sections;

force majeure - any unpredictable or unusual event or situation out of proper control of the operator of system of transfer which arose not owing to mistake of the operator of system of transfer which cannot be avoided or overcome in case of reasonable foresight and care which cannot be solved by measures which are from the technical, financial or economic point of view is acceptable possible for the operator of system of transfer, actually took place, gives in to objective check and makes impossible, temporarily or constantly, for the operator of system of transfer execution of its agreement obligations about access.

Other terms in these Rules are used in the values given in the Law of Ukraine "About the market of electrical energy" (further - the Law) and other regulatory legal acts of Ukraine.

1.3. The auction office and participants of distribution have the right to initiate modification of these Rules.

2. Requirements to management of restrictions

2.1. The auction office determines the size of available handling capacity for all directions according to the technique developed by the operator of system of transfer according to experience and practice of ENTSO-E and affirms the Regulator.

2.2. Access to handling capacity is acquired at auction or based on release according to the legislation.

2.3. The auction office shall support the necessary level of technical reserve of handling capacity of interstate power networks for maintenance of operational safety of network and cooperate for this purpose with operators of systems of transfer of the adjacent states.

All available handling capacity of interstate section shall be offered in the course of distribution of handling capacity taking into account the observance of standards of operational safety and obligations undertaken by the operator of system of transfer within the agreements on joint operation signed by the operator of system of transfer.

In case of availability of restrictions which regularly repeat the auction office applies in advance determined methods of management of restrictions which are appendix 1 to these rules.

2.4. Methods of management of restrictions shall provide compliance of the overflows of electrical energy arising owing to distribution of handling capacity, to standards of operational safety.

2.5. Methods of management of restrictions can be applied to handling capacities which are distributed for the short-term, medium-term and long-term periods and also concerning which release is provided.

2.6. Control of restrictions shall be exercised using non-discriminatory market mechanisms which provide effective economic signals to participants of the market and promote interstate trade in electrical energy.

2.7. Under management of restrictions discrimination of owners of FPP is not allowed.

2.8. The auction office has the right to deny to the participant of the market access to handling capacity of interstate sections in case of simultaneous emergence of the following conditions:

Increase in overflows of electrical energy by results of provision of such access leads 1) to violation of operational safety;

2) the price offered by the participant of auction for access to handling capacity is the low price offered by other participants of auction, access to handling capacity to which it will be provided.

2.9. Control of OES of Ukraine during parallel work with power supply systems of the adjacent states is exercised taking into account contracts with operators of system of transfer of power supply systems of the adjacent states and with observance of technical requirements and requirements of standards of operational safety.

By preparation for operation of network the next days the auction office communicates with operators of systems of transfer of the adjacent states, in particular, concerning the planned topology of network, the available and planned loadings of power units and overflows of electrical energy, for optimization of operation of network.

2.10. Reduction of RPS can be performed only in cases:

1) emergency repair of interstate power line or elements of system of transfer;

2) ensuring operational safety of network;

3) force majeur circumstances;

4) upon the demand of the next system operator.

2.11. In case of reduction the auction office during the working day notifies all registered participants through auction platform and e-mail on date, time, duration and the reason of such reduction. In case of reduction in after hours of the working day, and also in festive and non-working days of Ukraine the auction office notifies all registered participants during the next working day or the first working day after festive and non-working days.

2.12. No later than the fifth following for settlement the auction office publishes on own website information rather umensheny RPS for settlement month and sends to each owner of FPP, FPP of which are reduced, detailed calculation of compensation amount in private office of auction platform. Compensation of means is performed to the owner of FPP into the account determined by the registered participant within 4 working days after publication in private office of calculation of compensation amount.

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