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Ukraine

On August 14, 1996 No. 448/1473

RESOLUTION OF THE NATIONAL COMMISSION ON QUESTIONS OF REGULATION OF POWER INDUSTRY OF UKRAINE

of August 12, 1996 No. 36

About approval of Conditions and Rules of implementation of business activity on delivery of electrical energy on non-regulated rate

(as amended on on September 9, 2010)

According to the Presidential decree of Ukraine of March 14, 1995 the National commission on questions of regulation of power industry of Ukraine DECIDES: No. 213

1. Approve Conditions and Rules of implementation of business activity on delivery of electrical energy on non-regulated rate (are attached).

 

Member of the commission O. Gridasov

Approved by the Resolution the National commission on questions of regulation of power industry of Ukraine of August 12, 1996 No. 36

Conditions and Rules of implementation of business activity on delivery of electrical energy on unregulated rate

I. General provisions

1.1. Conditions and Rules of implementation of business activity on delivery of electrical energy on unregulated rate (further - Conditions and Rules) are developed according to the Laws of Ukraine "About entrepreneurship", "About power industry", "About natural monopolies".

1.2. If any of provisions of these Conditions and rules voids, it is excluded from Conditions and Rules, and the others remain acting.

1.3. The license cannot be transferred to the third parties.

1.4. In Conditions and Rules the following determinations are used:

- Licensed activities - business activity on delivery of electrical energy on unregulated rate for which implementation the licensee acquired the right from NKRE;

- The license - the single document of allowing nature which is issued to NKRE and grants the right to implementation of the certain type of business activity specified in it during fixed term;

- Councils of consumers - councils which are created by NKRE for protection of consumer interests;

owns particles (shares, shares) of authorized fund or assets (property) of other subject of business activity;

manages particles (shares, shares) of authorized fund of other subject of business activity;

uses on a leasehold basis assets (property) of other subject of business activity;

b) any company:

particles (shares, shares) of authorized fund or assets (property) of which directly or mediately, fully or partially (it is at least 25 percent) stay in property of other subject of business activity;

particles (shares, shares) of which authorized fund directly or mediately, fully or partially (it is at least 25 percent) stay in management of other subject of business activity;

assets (property) of which directly or mediately, fully or partially (it is at least 25 percent) stay in use on a leasehold basis of other subject of business activity;

c) connected with the licensee or with one of the companies specified in subitems and) and b) this determination, the control relations according to article 1 of the Law of Ukraine "About restriction of monopolism and non-admission of unfair competition in business activity";

- Dispatching management - process of management of activities for production, transfer and delivery of electrical energy for the purpose of ensuring reliable work of power supply system, maintaining the mode of loading of power system according to requirements of Regulating documents;

- The wholesale market of electrical energy of Ukraine (further - ORE) the market which is created by business entities for purchase sale of electrical energy based on the Agreement;

- Local (local) electric network - the power network intended for transfer of electrical energy from the high-level power network to the consumer.

Gross violation of Conditions and Rules - the one-time violation of Conditions and Rules testimonial of explicit and deliberate neglect their requirements from the licensee and/or led to effects in the form of the significant damage caused to the state, the surrounding environment, legal entities or physical persons; gross violation also failure to carry out by the licensee of the decision of NKRE on elimination of violations is considered at the scheduled time.

The agreement between members of the Wholesale market of the electric power - the agreement of the parties determining the purpose and conditions of activities, the right, obligation and responsibility of the parties and which is approved with the central executive body exercising control in power industry, NKRE, the Antimonopoly Committee of Ukraine.

The licensee - the subject of business activity registered in accordance with the established procedure, who obtained the license for delivery of electrical energy on unregulated rate which shall satisfy licensed conditions and carry out decisions of NKRE.

The wholesale supplier - the subject of business activity who obtained the license for the right of implementation of business activity on the wholesale supply of electrical energy also performs the wholesale supply of electrical energy according to the Agreement between members of the Wholesale market of the electric power.

The wholesale supply of electrical energy - purchase of electrical energy, forming of its wholesale price and sale of electrical energy at wholesale price to power suppliers.

Rules of the Wholesale market of electrical energy of Ukrainyneotjemlemaya the part of the Agreement between members of the Wholesale market of the electric power determining the mechanism of functioning of the Wholesale market of electrical energy of Ukraine, procedure for distribution of loadings between the generating sources, rules of forming of market price of electrical energy.

Violation of Conditions and Rules - actions of the licensee or its divergence encroaching on the established NKRE of the Condition and the Rule and decisions of NKRE and for which the legislation and these Conditions and Rules provide application of sanctions against it.

Further violation of Conditions and Rules - violation of licensed conditions which was allowed earlier by the licensee and within year made it again.

II. Conditions of implementation of licensed activities

Implementation of business activity on delivery of electrical energy on unregulated rate it is possible in case of accomplishment of the following conditions:

2.1. The licensee shall have only one License for the right of implementation of business activity on delivery of electrical energy on unregulated rate at any time. This condition does not limit the right of the licensee to have licenses for other types of activity.

2.2. The licensee together with the related companies shall not be engaged in licensed activities in the territory of implementation of licensed activities for delivery of electrical energy for unregulated rate by him.

2.3. The licensee together with the related companies can perform licensed activities if scopes of supply them the electric power in the territory of Ukraine do not exceed 33 percent of total amount of electric power consumption by consumers of Ukraine for last calendar year

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