RESOLUTION OF THE CABINET OF MINISTERS OF UKRAINE

of September 3, 2014 No. 510

About enhancement of state policy in the field of regulation of activities for transportation of natural gas by bulk distribution lines on the territory of Ukraine

For the purpose of increase in level of energy security of the state, integration of the natural gas market of Ukraine to the market of Energy Community according to the Constitutive treaty of Energy Community, requirements of the Directive 2009/73/EU (the third energy packet) the Cabinet of Ministers of Ukraine decides:

1. It is excluded

2. Establish according to the Temporary procedure approved by this resolution, rates for transportation of natural gas by bulk distribution lines for points of entry and points of exit, and also regulation of providing consumption of gas of gas transmission company on production and technology expenses and normative losses of natural gas which are determined in kind depending on transportation loads for exit points according to appendix with effective period from November 1, 2014 to December 31, 2014.

3. To provide to fund of state-owned property with the assistance of National joint stock company "Naftogaz Ukrainy" till November 1, 2014 modification of the Technique of assessment of assets of subjects of natural monopolies, subjects of managing in the adjacent markets in the field of the combined production of electrical and heat energy for the purpose of normative settlement of features of assessment of the assets used in the field of transportation of natural gas by bulk distribution lines.

4. To provide to the Ministry of Energy and Coal Industry together with National joint stock company "Naftogaz Ukrainy", Ukrtransgaz public joint stock company till April 23, 2015 carrying out independent assessment of the assets of Ukrtransgaz public joint stock company used in the field of transportation of natural gas by bulk distribution lines according to the Technique specified in Item 3 of this resolution.

To provide to fund of state-owned property till April 28, 2015 reviewing of the report on the specified assessment of assets.

5. To the Ministry of economic development and trade to approve till April 23, 2015 limit of regulatory regulation of the income in the field of transportation of natural gas by bulk distribution lines for 2015.

6. It is excluded

7. Recommend:

1) the National commission performing state regulation in the field of power and utilities:

approve till June 1, 2015. Procedure for forming of rates for transportation of natural gas by bulk distribution lines on the territory of Ukraine on the basis of the tariff input and output system taking into account the parameters of tariff setting having the long-term period of action for the purposes of the stimulating regulation and ensuring compliance with regulatory regulation of the income in the field of transportation of natural gas by bulk distribution lines on system of regulated base of the investment capital;

enact since October 1, 2015 rates for transportation of natural gas by bulk distribution lines on the territory of Ukraine for points of entry and points of exit, and also rates for transportation for consumers of Ukraine of natural gas by bulk distribution lines for points of entry in gas-transport system and exit points from gas-transport system which are calculated according to the Procedure specified in the paragraph the second this subitem;

develop and approve till July 1, 2015. The standard agreement about provision of services on transportation of natural gas by bulk distribution lines on the tariff input and output system which will be enacted since October 1, 2015;

together with the Ministry of Economic Development and Trade, the Ministry of Energy and Coal Industry to prepare by August 1, 2015 the corresponding drafts of regulatory legal acts on entering of necessary changes into the legislation in connection with transition to determination of rates for transportation of natural gas by bulk distribution lines through the territory of Ukraine on the basis of the tariff input and output system.

Appendix

to the Resolution of the Cabinet of Ministers of Ukraine of September 3, 2014 No. 510

Rates for transportation of natural gas by bulk distribution lines for the points of entry in gas-transport system located on frontier of Ukraine, and the exit points from gas-transport system located on frontier of Ukraine, and also regulation of providing consumption of gas of gas transmission company on production and technology expenses and normative losses of natural gas which are determined in kind depending on transportation loads for exit points

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