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

of July 27, 2017 No. 975

About approval of the Procedure for asset allocation, expenses and the income between types of activity of the licensee on transfer of electrical energy the high-level and interstate power networks

According to the laws of Ukraine "About natural monopolies", "About the National commission performing state regulation in the field of power and utilities" and "About the market of electrical energy" the National commission performing state regulation in spheres of power and utilities decides:

1. Approve the Procedure for asset allocation, expenses and the income between types of activity of the licensee on transfer of electrical energy the high-level and interstate power networks which is applied.

2. This resolution becomes effective from the date of, its publication following behind day in the official printing publication - the Pravitelstvenny Kuryer newspaper.

Chairman of NKREKP

D. Vovk

Approved by the Resolution of the National commission performing state regulation in the field of power and utilities of Ukraine of July 27, 2017 No. 975

Procedure for asset allocation, expenses and the income between types of activity of the licensee on transfer of electrical energy the high-level and interstate power networks

1. General provisions

1.1. Action of this Procedure extends to the licensee on transfer of electrical energy the high-level and interstate power networks (further - the licensee).

1.2. This Procedure establishes the mechanism and the principles of asset allocation, expenses and the actual income of the licensee between types of economic activity for determination of regulatory base of assets, the necessary income, calculation of rates, accounting on the corresponding type of activity.

1.3. For the purposes of this Procedure assets, expenses, the income of the licensee are distributed on the following types of activity:

transfer of electrical energy the high-level and interstate power networks (further - transfer of electrical energy);

service in centralized dispatching management of the integrated power system of Ukraine (further - service in centralized dispatching management);

other types of activity.

1.4. In order to avoid cross subsidizing between licensed types of activity and other types of activity the licensee shall keep separate financial accounting and the reporting under each of types of activity.

1.5. Based on this Procedure the licensee shall develop own procedure for asset allocation, expenses and the income between types of economic activity, to approve it by the order and to give to NKREKP.

In case of modification of own procedure for asset allocation, expenses and the income between types of activity the licensee shall provide surely the relevant order on modification of NKREKP in case of the next establishment of rates.

1.6. The terms provided in this Procedure are applied in the values given in the Law of Ukraine "About power industry" and the Instructions for use electrical energy approved by the resolution NKRE of July 31, 1996 No. 28, registered in the Ministry of Justice of Ukraine on August 2, 1996 at No. 417/1442 (further - Instructions for use by electrical energy).

2. The principles of cost allocation and assets between types of activity

2.1. For the purposes of this Procedure expense allocation and assets between the types of activity specified in Item 1.4 of Chapter of 1 this Procedure is performed on the basis of the place of origin and is based on distribution of functions between structural divisions of the licensee (general production and administrative functions) and depending on nature of production (the main and auxiliary production).

2.2. The group of expenses is performed according to the National provision (standard) of financial accounting 1 "General requirements to the financial reporting" approved by the order of the Ministry of Finance of Ukraine of February 7, 2013 No. 73, registered in the Ministry of Justice of Ukraine on February 28, 2013 for No. 336/22868.

2.3. On the basis of the place of origin independent subjects of the cost accounting are allocated.

2.4. On the basis of nature of production:

structural divisions which directly perform licensed activities for transfer of electrical energy and for provision of service in centralized dispatching management treat the main production;

the structural divisions servicing the main production and other types of activity in particular treat auxiliary production perform the works on maintenance, repair of technical means providing with the tool, spare parts for repair of the equipment, provide transport services (the mechanical-repair and repair and construction divisions, divisions of motor transport and other divisions determined by structure of the licensee), etc.;

the general economy functions of structural divisions of the licensee directed to servicing and management belong to general production and administrative functions.

3. Distribution of functions between types of activity of the licensee

3.1. The functions relating to activities for transfer of electrical energy are:

1) ensuring effective operation and repair of the high-level and interstate power networks, reduction of costs of material resources and losses of electrical energy in power supply networks;

2) the organization and carrying out repair and operational and emergency recovery operations on objects of the high-level power networks, development and production of hardware, the remedies and means of small-scale mechanization necessary for carrying out these works;

3) forming and carrying out single technical policy on development and implementation of telecommunication network, data transmission channels, systems of relay protection and antiemergency automatic equipment, the automated systems of dispatching and technology management, systems of accounting and control of indicators of quality of electrical energy;

4) ensuring equipping of objects of the licensee with modern means of relay protection and antiemergency automatic equipment, communication, telemechanics, channels of antiemergency and technology control, systems of accounting and control of indicators of quality of electrical energy;

5) operation of means of relay protection and antiemergency automatic equipment, communication, telemechanics, systems of accounting and control of indicators of quality of electrical energy;

6) interaction with the central executive body on metrology, its territorial authorities;

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