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LAW OF UKRAINE

of September 22, 2016 No. 1540-VIII

About the National commission performing state regulation in the sphere of power and utilities

(as amended on 21-10-2021)

This Law determines legal status of the National commission performing state regulation in spheres of power and utilities, its tasks, function, power and procedure for their implementation.

Section I General provisions

Article 1. Status of the Regulator

1. The national commission performing state regulation in spheres of power and utilities (further - the Regulator), is permanent central executive body with the special status which is formed by the Cabinet of Ministers of Ukraine.

Features of the special status of the Regulator are caused by its tasks and powers and determined by this Law, other acts of the legislation and consist, in particular, in features of the organization and procedure for activities of the Regulator, in special procedure for appointment of members of the Regulator and the termination of powers by them, in special procedural bases of activities of the Regulator and guarantees of independence in adoption of decisions by it within the powers determined by the law, establishment of payment terms of work of members and workers of the Regulator.

The regulator is collegiate organ which performs state regulation, monitoring and control of activities of subjects of managing in spheres of power and utilities.

2. The regulator is legal entity of the public law, has the isolated property which is state-owned property, accounts in the bodies performing treasurer servicing of budgetary funds, seal with the image of the State Emblem of Ukraine and the name.

3. Functioning of the Regulator is ensured by its central office and territorial authorities.

4. Territorial authorities of the Regulator are formed in the Autonomous Republic of Crimea, areas, the cities of Kiev and Sevastopol according to its decision as the structural divisions which do not have the status of the legal entity.

Territorial authorities act on the basis of the provisions which affirm the Regulator. Powers of territorial authorities are determined by the Regulator according to the law.

Article 2. Regulator field of activity

1. The regulator performs state regulation, monitoring and control of activities of subjects of managing in spheres of power and utilities, in particular:

1) in the sphere of power:

activities for production, transfer, distribution, delivery of electrical energy;

activities for the organization of purchase and sale of electrical energy in the market "for the days ahead" and the intra daily market, ensuring purchase of electrical energy on "green" rate, trading activities.

activities for transportation, distribution, storage (downloadings, selection), provision of services of the LNG installation, supply of natural gas;

activities for oil transportation, oil products and other substances pipeline transport;

2) in the sphere of utilities:

activities for production of heat energy on the heatgenerating installations, including installations for the combined production of heat and electrical energy, transportation by its high-level and local (distribution) thermal networks, delivery of heat energy in amounts more than a level which is established by conditions and rules of implementation of economic activity (licensed conditions);

activities in the sphere of centralized water supply and water disposal in amounts more than a level which is established by conditions and rules of implementation of economic activity (licensed conditions).

Distribution of types of activity according to scope of application is applied only for the purposes of this Law.

2. State regulation in the spheres determined in part one of this Article is performed by the Regulator according to this Law, and also the laws of Ukraine "About natural monopolies""About the market of electrical energy", "About the natural gas market", "About pipeline transport", "About the combined production of heat and electrical energy (cogeneration) and use of waste power potential", "About state regulation in the sphere of utilities", "About heat supply", "About drinking water and drinking water supply", "About energy efficiency", other acts of the legislation governing the relations in the respective spheres.

Article 3. Purpose, forms of activities of the Regulator and its main objectives

1. The regulator performs state regulation for the purpose of achievement of balance of consumer interests, the subjects of managing performing activities in spheres of power and utilities and the state, ensuring energy security, the European integration of electricity markets and natural gas of Ukraine.

2. The regulator performs state regulation in the way:

1) normative legal regulation in cases when appropriate authority is conferred to the Regulator by the law;

2) licensing of activities in spheres of power and utilities;

3) forming of price and tariff policy in spheres of power and utilities and realization of the corresponding policy in cases when such powers are conferred to the Regulator by the law;

4) state control and application of corrective actions;

5) uses of other means provided by the law.

3. The main objectives of the Regulator are:

1) ensuring effective functioning and market development in spheres of power and utilities;

2) assistance to effective opening of the markets in spheres of power and utilities for all consumers and suppliers and ensuring non-discriminatory access for users to networks/pipelines;

3) assistance of integration of the markets of electrical energy, natural gas of Ukraine with the corresponding markets of other states, including within Energy Community, cooperation with Council of regulators of Energy Community, the Secretariat of Energy Community and national regulators of power of other states;

4) ensuring consumer protection of goods, services in spheres of power and utilities concerning receipt of these goods and services of proper quality in enough at reasonable prices;

5) assistance to cross-border trade in electrical energy and natural gas, ensuring investment appeal for development of infrastructure;

6) realization of price and tariff policy in spheres of power and utilities;

7) assistance to implementation of actions for energy efficiency, increase in share of energy production from renewable energy resources and protection of the surrounding environment;

8) creating favorable conditions for investment attraction in market development in spheres of power and utilities;

9) assistance to development of the competition in the markets in spheres of power and utilities;

10) other tasks provided by the law.

Article 4. Basic principles of activities of the Regulator

1. The basic principles of activities of the Regulator are:

1) legality;

2) independence and independence in the limits determined by the law;

3) competence;

4) efficiency;

5) justice;

6) predictability and timeliness of decision making;

7) targeting of regulation;

8) impartiality and objectivity in case of decision making;

9) openness and transparency, publicity of process of state regulation;

10) discrimination non-admission;

11) responsibility for the made decisions.

Section II of Feature of the organization of activities of the Regulator

Article 5. Guarantees of implementation of powers of the regulator

1. The regulator in the activities is guided by the Constitution of Ukraine, this Law and other legal acts of Ukraine.

2. During accomplishment of the functions and powers the Regulator is effective independently in the limits determined by the law. Written or oral instructions, orders, orders of public authority, other state body, local government body, their official and officials, subjects of managing, political parties, public associations, labor unions or their bodies, and also other persons who limit powers of members of the Regulator and officials of the Regulator is illegal impact.

To public authorities, local government bodies, their official and to officials, subjects of managing, to political parties, public associations, labor unions and their bodies it is forbidden to exert illegal impact on processes of state regulation in spheres of power and utilities.

Persons performing illegal influence on process of accomplishment by members of the Regulator, his officials of the functions and powers bear administrative and criminal responsibility according to the law.

3. The solution of the Regulator are not subject to coordination with public authorities, except the cases provided by this Law.

Solutions of the Regulator can be appealed judicially. Appeal of solutions of the Regulator does not stop their accomplishment.

4. The regulator has enough human and financial resources for accomplishment of the tasks in connection therewith the Law and other laws. The regulator independently distributes funds allocated to the Regulator for the corresponding year and disposes of them.

5. Members of the Regulator, other officials of the Regulator act irrespective of private interests. They have no right to be owners of corporate laws of any subjects of managing performing activities in spheres of power and utilities according to the Law of Ukraine "About prevention of corruption".

The regulator approves rules of professional ethics which are applied to members of the Regulator, employees of central office and territorial authorities of the Regulator. Rules of professional ethics, in particular, shall contain:

1) requirements about holding by members of the Regulator of meetings with representatives of the subjects performing activities in spheres of power and utilities, and/or subjects related the control relations, concerning implementation by such subjects of activities with participation at least two other members of the Regulator or heads of structural divisions, and in case of holding meetings by employees of central office and/or territorial authorities of the Regulator - with participation at least two other workers;

2) obligations to report members of the Regulator, employees of central office and territorial authorities of the Regulator about availability of conflict of interest in the course of execution of office powers by them.

Requirements of this Article do not limit the Regulator right to cooperation with other public authorities, local government bodies and do not limit operation of articles 15 and 16 of this Law.

Article 6. Regulator relations with the Verkhovna Rada of Ukraine, Cabinet of Ministers of Ukraine, other public authorities

1. The regulator is accountable to the Verkhovna Rada of Ukraine. The regulator annually till June 1 submits in the Verkhovna Rada of Ukraine the report on the activities and accomplishment of tasks of state regulation in spheres of power and utilities for previous year.

2. The regulator interacts with the Cabinet of Ministers of Ukraine, the central executive bodies.

3. The regulator develops and submits to the Cabinet of Ministers of Ukraine drafts of acts of the Cabinet of Ministers of Ukraine on the questions which are within its competence generalizes and analyzes information on their accomplishment, makes offers on their enhancement.

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