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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

(The last edition from 25-04-2019)

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 independent state collegiate organ which purpose of activities is 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 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", 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;

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