This publication has been produced with the assistance of the European Union in the framework of the EU4Energy Initiative and with the support of the International Renaissance Foundation. The contents of this publication are the sole responsibility of NGO “DIXI GROUP”, as well as Civil Network “OPORA”, All-Ukrainian NGO “Energy Association of Ukraine”, Resource & Analysis Center “Society and Environment”, Association “European-Ukrainian Energy Agency”, and can under no circumstances be regarded as reflecting the position of the European Union and/or the International Renaissance Foundation. The EU4Energy Initiative covers all EU support to improve energy supply, security and connectivity, as well as to promote energy efficiency and the use of renewables in the Eastern Partner countries Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine. It does this by financing projects and programmes that help to reform energy markets and to reduce national energy dependence and consumption. Over the longer term, this makes energy supply more reliable, transparent and affordable, thus reducing energy poverty and energy bills for both citizens and the private sector. More information on: www.EU4Energy.eu
The project “Enhancing impact of civil society in monitoring and policy dialogue on energy and related sectors’ reforms in line with the Association Agreement implementation” aims at strengthening the role of civil society in advocating reforms in the energy and related sectors. The key objectives of the project are: • monitoring of the implementation of the energy provisions of the Association Agreement, including relevant environmental and trade-related commitments; • strengthening the civic experts’ and local actors’ capacity to track actual implementation of the reforms; • facilitation of public dialog to lead in proper implementation of the European energy and environmental reforms; • informing stakeholders and the Ukrainian society about the meaning and potential benefits of European reforms in energy and related sectors in order to empower them to keep the government accountable for pursuing these reforms. The Project is supported by the European Union within the framework of EU4Energy initiative and cofunded by the International Renaissance Foundation
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Executive Summary The Gas Task Force experts noted the government’s decision, which allowed Naftogaz to alienate the fixed assets not used for gas transportation and storage, as well as accelerating the company’s consolidation of assets to create a separate branch for gas storage in the structure of Ukrtransgaz. At the same time, in other areas of the market reforming, progress has not been recorded. Experts from the Electricity and Nuclear Security Task Force note that the NEURC continues to actively work on secondary legislation to introduce a new electricity market. A number of important decisions were approved on cancelling regulatory acts on the current electricity market from July 2019. 24 out of 25 oblenergos unbundled into distribution and supply companies and received the universal service provider licenses. The Energy Efficiency and Social Issues Task Force marked a significant acceleration in the preparation of the regulatory legal framework for almost all “energy efficiency package” laws and, subject to this pace, forecasts the completion of the development of an absolute majority of documents by the end of the year. At the same time, group experts continue to record problems in financing government programs, in particular, the “warm loans” program, as well as delaying the reform of subsidies. Experts of the Environment and Renewable Energy Task Force note that the Ministry of Environment is preparing for the practical implementation of the Law On Strategic Environmental Assessment - in August, methodological recommendations on the implementation of the strategic environmental assessment of state planning documents were made public. The Oil and Oil Products sector experts draw attention to the fact that the “roadmap for holding international oil and gas auctions”, the approval of which was announced on July 26, 2018, has not yet been agreed upon. The draft Government resolution on the selected model of minimum reserves of oil and oil products has not been approved. The drafting of the new version of the Subsoil Code, as well as the implementation of the requirements of Directive 98/70/EC on quality of gasoline and diesel fuel and Directive 94/63/EC on the control of volatile organic compound emissions from oil products reservoirs, has been discontinued. In the Business Climate area, experts point to the problem of completing the competition for 2 positions in the NEURC. Through legal claims of candidates not allowed, the competition has been blocked for more than three months. Against this background, the Ministry of Economic Development and Trade published the draft resolution which will allow decreasing the pressure on business through excessive inspections for discussion. Most used abbreviations CMU – Cabinet of Minister of Ukraine DHC – district heating company IAEA – International Atomic Energy Agency NEURC – National Energy and Public Utilities Regulatory Commission NNEGC – National Nuclear Energy Generating Company NPP – nuclear power plant SAEZM – State Agency on the Exclusion Zone Management SE – state enterprise TSO – transmission system operator UES – United Energy System
Gas During the summer plenary holidays, in the gas sector MPs registered only one legislative initiative - a draft resolution on the need to extend the regulation on imposing public service obligations (PSO) to ensure public interest in the natural gas market, which regulates the price for households and district heating companies, for a long term. At the same time, according to the government’s decision approved at the end of August, the duration of this regulation (and, consequently, the invariability of the price for gas for these categories of consumers) was extended for another month, until October 2018. In addition, in order to optimize the costs of Naftogaz, the Cabinet of Ministers agreed to alienate the company’s fixed assets that are not used for gas transportation by main gas pipelines and its storage in underground gas storage facilities. There were no other government decisions in the area of Naftogaz reform in August 2018. Instead, Naftogaz, within the framework of the division of functions, accelerates the consolidation of assets to create a separate branch for storage of natural gas in the structure of JSC Ukrtransgaz. At the same time, Naftogaz has additionally created two new subsidiaries for the supply of gas to heat producers and industry. The NEURC approved the 10-year network development plan for the TSO1, with funding totaling more than UAH 60 billion, and proposed to simplify the storage of gas in Ukrainian storages for foreign traders. From August 2, Ukrtransgaz switched to new tariffs for gas storage, which also operate for the “customs warehouse” mode, and has continued the campaign to inject gas into storage facilities. At the end of August, gas reserves accumulated in storage facilities of Ukraine exceeded 14.3 bcm.
Directive 2009/73/EC concerning common rules for the internal market in natural gas and repealing Directive 2003/55/EC (Art. 338, 341, Annex XXVII of the AA) in accordance with Art. 278 of the AA The draft VRU resolution (No. 90272), registered in August and introduced on the initiative of the MP S. Shakhov, provides for recognizing the current gas prices for domestic consumers and producers of heat as “considerably overestimated” and the rate of growth of domestic gas production in Ukraine as “unsatisfactory”3. In this regard, it is proposed to recommend the Cabinet of Ministers to make it impossible, compared to August 2018, to increase the price of gas for the specified categories of consumers by extending the validity of the PSO Regulation (the CMU Resolution No. 1874) for the period of not less than three years and to ensure eliminating the reasons for a low increase in the production volume. It is planned to oblige the Ministry of Energy and Coal Industry to annually publish the cost price (and cost structure) of its own gas production by all business entities owned by the state (fully or partially). The Cabinet of Ministers once again postponed the resolution of the problem of changing the price of gas for the population for a month, by adopting the Resolution No. 6995 on the extension of the current PSO Regulation by 1 October 2018. The Government also approved the order (№586-р6) aimed at increasing the efficiency of Naftogaz’s economic activity, by which it approved the company’s decision to free itself from fixed assets not involved in the areas of main gas pipelines and underground storage of natural gas.
1
http://www.nerc.gov.ua/?news=7898
2http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?id=&pf3511=64522 3According
to the media (http://enkorr.com.ua/a/news/V_avguste_dobicha_gaza_uvelichilas_na_26/233698), for 8 months of this year, in Ukraine, the natural gas production was by 0.2% less than for the same period of 2017 (Ukrgazvydobuvannya increased production by 0.6%, and Ukrnafta reduced it by 9%). 4 http://zakon.rada.gov.ua/laws/show/187-2017-%D0%BF 5 https://www.kmu.gov.ua/ua/npas/pro-postanovi-kabinetu-ministriv-ukrayini-vid-22-bereznya-2017-r-187 6 https://www.kmu.gov.ua/ua/npas/pro-pogodzhennya-vidchuzhennya-osnovnih-fondiv-publichnogo-akcionernogo-tovaristvanacionalna-akcionerna-kompaniya-naftogaz-ukrayini
Gas At the same time, the media confirmed7 that Naftogaz is actively working to preserve in future the control over the gas transportation and storage areas already separated from the parent company due to the organization of the relevant branches under the auspices of Ukrtransgaz. It is reported that, in addition to the branch of TSO of Ukraine currently existing in Ukraine, on behalf of Naftogaz8, JSC Ukrtransgaz is assigned to accelerate the following processes: creation and optimization of the gas storage branch; separating the transportation function by involving by means of an open tender a consulting company that will accompany the project (and it is recommended to agree all the main terms of the tender on the selection of such a company, which shall be announced by Ukrtransgaz, with Naftogaz). In parallel, in August 2018, Naftogaz registered two subsidiary gas supply companies in the form of LLC: Naftogaz Teplo9 (headed by P. Petchenko) and Naftogaz Trading10 (headed by V. Volynets)11 in midAugust of 2018. Both are intended to carry out the functions of traders (the first one - for heat supply companies, the second one - for industrial consumers) and have already received licenses to conduct activities for the supply of natural gas from the Regulator (NEURC Resolution No. 96212). Regarding switching to the daily gas market balancing mode, which was postponed by the NEURC until October 1, in August, there were no reports on this issue, except from the side of Ukrtransgaz. The company repeated its position in the form of a commentary to the statements of the head of the NEURC O. Kryvenko13, and also reported that it had appealed to the Regulator with the request to take control measures of up to 10 DSOs because of the fact that they provided incorrect information about EIC-codes of consumers14. In general, during the licensing campaign in the gas sector for 8 months of 2018, the Regulator issued 88 permits to supply natural gas15. At the beginning of September 2018, the total number of licensees in the gas supply sector reached 457. Only in August, the NEURC adopted 12 resolutions in this area (among which, among other things, there were resolution on unplanned inspections of DSOs, arranged at the request of Ukrtransgaz). By one of the resolutions (No. 88616), the commission approved the general procedure for the formation, maintenance and use of the information of the license registry, by the other (No. 93517), it approved the schedule of inspection of licensees in the 4th quarter of this year, according to which the compliance with the license terms of gas supply by eight business entities will be inspected. The NEURC has also made a decision (Resolution No. 83718) to change the forms of provision of information provided for by the procedure of distribution of funds received in special accounts for settlements with the natural gas supplier assigned with public service obligations, in order to bring them into compliance with the new wording of this procedure approved by the Cabinet of Ministers this year (CMU Resolution No. 14419). According to the ProZorro procurement system20, at the beginning of this month, Naftogaz won seven 7
https://www.ukranews.com/news/579633-neftegaz-poruchyl-ukrtransgazu-uskoryt-process-sozdanyya-fylyala-pokhranenyyu-gaza 8 Ibid. 9 Official website - http://www.naftogazteplo.com.ua 10 Official website - http://naftogaztrading.com.ua 11 http://reform.energy/news/naftogaz-ukrainy-sozdal-dochki-dlya-postavki-gaza-teplovikam-i-promyshlennosti-8365 12 http://www.nerc.gov.ua/?id=34213 13 http://utg.ua/utg/media/news/2018/08/pozicizya-shhodo-ocznki-dyalnost-ukrtransgazu-golovoyu-nkrekp-oksanoyukrivenko.html 14 http://utg.ua/utg/media/news/2018/08/ukrtransgaz-prosyt-nkrekp-zdiisnyty-pozaplanovu-perevirku-10-operatoriv-grmschodo-dotrymannya-norm-kodeksu-gts.html 15 http://www.nerc.gov.ua/?id=11957 16 http://www.nerc.gov.ua/index.php?id=33948 17 http://www.nerc.gov.ua/?id=34179 18 http://www.nerc.gov.ua/index.php?id=33860 19 http://zakon.rada.gov.ua/laws/show/144-2018-%D0%BF 20 https://zakupki.prom.ua/
Gas Ukrtransgaz tenders for the purchase of more than 1.5 bcm of gas for the needs of balancing for the total amount of UAH 12.64 billion (Trafigura Ukraine became the winner of another tender - 216.9 bcm for UAH 1.779 billion)21. At the same time, in August, Naftogaz doubled its own gas prices quotes for industry for September 2018. In the first published22 price offers of Naftogaz23, compared to the prices for August 2018, prices were increased by 4.6%. Depending on the volume of purchases and payment terms, the price of gas was either UAH 10,599.6 or 11,594.4/tcm (VAT included). According to the final offers of Naftogaz24, in case of conclusion of contracts from 30 August 2018, gas prices in September for industrial and other consumers who are not subject to the Regulation on Imposing Public Service Obligations, compared to the prices for August 2018, was increased by more than 20%. According to the media25, Naftogaz explained that the price was adjusted “due to significant changes in the components of the price of natural gas, in particular, the increase of quotations on European hubs and decrease in the weighted average hryvnia’s rate to the US dollar and the euro”. According to the adjusted price list26, the price of gas as a commodity (VAT included) was established from 1 September 2018, at the following levels: for monthly gas needs of up to 50 tcm inclusive, for non-regulated monthly needs and monthly needs from 50 tcm without prepayment – UAH 13,338.0 per tcm; for monthly needs from 50 tcm, subject to preliminary payment27 - UAH 12249.6 per thousand cubic meters (the same price level - UAH 10130.4 per thousand cubic meters - is established for subsidiaries founded by Naftogaz, 100% of the authorized the capital of which is owned by the company).
Regulation (EC) No. 715/2009 on conditions for access to the natural gas transmission networks, replacing Regulation (EC) No. 1775/2005 (Art. 338, 341, Annex XXVII of the AA) according to Art. 278 of the AA, trade issues (Art. 269-274 of the AA) According to the plan for the development of the gas transmission system of JSC Ukrtransgaz for 20182027 (Resolution No. 95628) approved by the Regulator, the approved amounts of planned financing (excluding VAT) amount to UAH 60.043 billion, in particular: • for 2018 - UAH 6.028 billion, • for 2019-2020 - UAH 19.526 billion, • for 2021-2027 – UAH 34.5 billion. Within the funds allocated for 2018, it is provided for to invest in the following measures: construction of the interconnector Drozdovichi-Bilche-Volytske (UAH 500 million), reconstruction of Yahotyn compressor station (UAH 502.2 million), reconstruction of Berehovo gas-metering station (about UAH 111 million), major repairs of Urengoy-Pomary-Uzhgorod main gas pipeline (about UAH 40 million) and the reconstruction of the Ugryniv gas distribution station (UAH 8.3 million). At the same time, the Regulator has banned JSC Ukrtransgaz from using funds for 12 measures of the plan submitted to it, until the NEURC provides expert opinions on these measures, and ordered to carry out all procurements according to the plan strictly in accordance with the provisions of the Law On Public Procurement. 21
It should be noted that another 4 auctions did not take place, only Naftogaz was admitted to one, and another 3 - through complaints about not accepting from Ukrnaftoburinnya and DTEK Trading. 22 http://www.naftogaz.com/www/3/nakweb.nsf/0/7442ED6DE1402C1DC22582EC003F8402?OpenDocument&year=2018&mo nth=08&nt=%D0%9D%D0%BE%D0%B2%D0%B8%D0%BD%D0%B8& 23 http://www.naftogaz.com/files/Information/Naftogaz-gas-prices-ne-PSO-September-2018.pdf 24 http://www.naftogaz.com/www/3/nakweb.nsf/0/7FFA660B47746309C22582F9005753FD?OpenDocument&year=2018&mo nth=08&nt=%D0%9D%D0%BE%D0%B2%D0%B8%D0%BD%D0%B8& 25 http://biz.liga.net/ekonomika/tek/novosti/naftogaz-povysil-tseny-na-gaz-iz-za-kursa-dollara 26 http://www.naftogaz.com/files/Information/Naftogaz-gas-prices-ne-PSO-September(2)-2018.pdf 27 Payment during the calendar month preceding the month of gas supply 28 http://www.nerc.gov.ua/?id=34235
Gas In addition, the NEURC has published for public discussion29 the draft amendments to the Gas Storage Facilities Code and the Model Agreement on Gas Storage (Injection, Selection) aimed at improving the regulation of relations between the storage system operator and the customers of the services in terms of storage of gas in the “customs warehouse” mode. According to the Regulator, accepting the proposed amendments will provide new customers with “simple and non-onerous conditions of access” to gas storage facilities and, in particular, will help eliminate “barriers that may prevent such access for new wholesalers or suppliers of natural gas” (including alternative sources). Meanwhile, Naftogaz published the text30 and discussed31 the proposals for the introduction of a new methodology for calculating the cost of gas transportation, as presented in the company’s press release32 - in line with the new European regulations in accordance with Regulation (EC) No 2017/460. The draft methodology was developed by specialists of Ukrtransgaz, together with experts of the consulting company Brattle Group, the profile of which is to provide advice to national energy regulators. Developers, representatives of companies - members of the American Chamber of Commerce, as well as representatives of Naftogaz and the NEURC (who received these changes on July 13) took part in the discussion of the proposed changes33. Meanwhile, the Energy Community Secretariat has disseminated results of REKK research34 on simulating the use of gas transportation tariffs based on the baseline methodology of Regulation (EU) No. 2017/460 - weighted for distance and capacity (capacity weighted distance, CWD) value for each entry/exit point, which are grouped into clusters. This study was conducted for Serbia and Ukraine and aimed at helping regulators and market players. The Secretariat expects that by the end of the year, the European Commission will submit a formal proposal for the adoption of Regulation (EC) No 2017/460 as binding on the Energy Community countries35. According to the media36, the TSO of Romania, Transgaz, is planning to build an additional pipelineinterconnector connecting the gas transportation systems of Ukraine and Romania. The intention to build such a connection shows that Romania is looking for an alternative option to the gas pipeline Bulgaria-Romania-Hungary-Austria (BRUA) for exporting gas from its deposits in the Black Sea. The project is still at an early stage of implementation, its throughput capacity is not defined. However, Transgaz provides for carrying out a feasibility study by the end of 2019. According to the report of the TSO of Romania for the first half of 2018, announced on August 22, the pipeline is planned to be constructed between the settlements of Herasti (northeastern Romania), where it will be connected to the Romanian high-pressure gas transportation system, and Siret, located on the border of Ukraine , not far from Moldova. It is expected that contracts for the purchase of works and materials for the construction of the interconnector will be concluded in 2021, and its entry into force, under favorable conditions, may take place in 2025.
Directive 2004/67/EC concerning measures to safeguard security of gas supply (Art. 338, 341, Annex XXVII of the AA), action of “Early Warning Mechanism” (Annex XXVI of the AA), actions in emergencies (Art. 275-276, 309, 314) According to the operational data of the TSO37, within the framework of the campaign of injecting gas to storages, Ukrtransgaz, after the heating season, has significantly increased gas reserves - by 6.86 bcm 29
http://www.nerc.gov.ua/?id=33969 http://www.naftogaz.com/files/Information/Metodyka-taryfy-transport-gaz-proekt.pdf 31 http://www.chamber.ua/uk/Events/Event/10023 32 http://www.naftogaz.com/www/3/nakweb.nsf/0/AB2354DA4B135E6EC22582E90045621A?OpenDocument&year=2018&mo nth=08&nt=%D0%9D%D0%BE%D0%B2%D0%B8%D0%BD%D0%B8& 33 http://www.naftogaz.com/files/Information/DRAFT-letter-to-Regulator-tabl.pdf 34 https://www.energy-community.org/dam/jcr:77b4babd-724b-4978-b95f-d003ef3f5edd/REKK_Gas_RS_UA.pdf 35 https://energy-community.org/news/Energy-Community-News/2018/09/05.html 36 http://interfaxenergy.com/gasdaily/article/32303/romania-eyes-alternatives-to-brua-for-black-sea-gas 37 http://utg.ua/live 30
Gas (from 7.44 to 14.3 bcm38). The observance of the rate of injection during the last 4 months (on average over 1.5 bcm/ month) can ensure, as of November 1, 2018, even exceeding the volume of 17 bcm, expected by the Government. On August 1, Ukrtransgaz switched to the new principles of payment for the ordered capacity tariffs for underground gas storage services39, which are determined by the new calculation method approved by the NEURC Resolution No. 480 of 19 June 2018. The new tariffs are based on the charge for the power of injection, selection and working volume of gas storage, while the previous ones provided for the charge for the actual amount of injection, withdrawal and storage. As previously reported, the tariff for gas injection (excluding VAT) is now UAH 64.4/tcm/day, storage – UAH 0.172/tcm/day, withdrawal – UAH 67.1 UAH/tcm/day. These rates also apply to the “customs warehouse” service. At the same time, the operational data of Ukrtransgaz40 also show that over the 8 months of the current year, the volume of gas transit of Ukraine’s TSO, compared to the same period in 2017, decreased by 6% (2.25 bcm) and amounted to only 58.2 bcm. The issue of Ukrainian transit has become one of the subjects of bilateral talks held on August 18 between German Chancellor A. Merkel and Russian President Vladimir Putin. On the one hand, before their start, A. Merkel stressed that Germany’s position was to preserve the role of Ukraine as a transit country in supplying Russian gas to Europe, while during the negotiations Putin assured that transit of gas through Ukraine could continue after the construction of Nord Stream 2, if it “meets the economic requirements”41. On the other hand, according to the press-secretary of the President of the Russian Federation D. Peskov, during the discussion, the parties agreed that Nord Stream 2 project should be protected from attacks by third countries42. Meanwhile, according to the media43, the US plans to impose sanctions on companies involved in the construction of the gas pipeline, or firms that finance it. The relevant draft law has already been developed44. The sanctions provided for can be introduced within a few weeks, and they can prevent the completion of the construction of Nord Stream-2. At the same time, even despite the fact that Denmark still did not give permission for its construction, the implementation of Nord Stream 2 gas pipeline project is gaining momentum45. In the near future, the laying of an underwater part of the gas pipeline will be started - from the territory of Finland46 (it is wellknown that the project operator, Nord Stream 2 AG, has full set of permits for the construction of the planned gas pipeline in Germany, Finland and Sweden). Solitaire pipelaying vessel will lay a part of the gas pipeline in the Finnish exclusive economic zone, and then later - in the waters of Russia. According to Marine Traffic website, Solitaire has already arrived at the port of Helsinki. In the Swedish parliament, this project of Gazprom is not supported. It became known47 that representatives of all Swedish parliamentary parties oppose the construction of Nord Stream 2. A member of the Moderate Coalition Party, K. Engström, rejects the project as a poor proposal in terms of energy policy and the environment. Indeed, Sweden, like other EU countries, seeks to increase its share of renewable energy production, while the “dependence on gas” leads to the opposite direction. A 38
As of 25.08.2018. http://utg.ua/utg/media/news/2018/08/ukrtransgaz-perehodit-na-novi-taryfy-zberigannia-gazu-v-psg.html 40 http://utg.ua/live 41 http://news.liga.net/politics/news/putin-zayavil-chto-tranzit-gaza-cherez-ukrainu-budet-prodoljatsya 42 https://tass.ru/ekonomika/5469256 43 https://www.wsj.com/articles/u-s-opposition-to-pipeline-hangs-over-meeting-between-putin-and-merkel1534582801?mod=hp_lead_pos6 44 https://www.kommersant.ru/doc/3708228 45 Nord Stream 2 AG has tried to circumvent the need for such a permit by filing an application for another North Stream 2 route to the Energy Agency of Denmark - in the exclusive economic zone northwest of the island of Bornholm (https://www.nord-stream2.com/ru/dlia-pressy/novosti-i-meropriiatiia/podacha-zaiavki-i-otcheta-ob-ovos-na-alternativnyimarshrut-v-danii-104/). This alternate route does not pass through Danish territorial waters. 46 https://www.vedomosti.ru/business/articles/2018/09/03/779813-gazprom 47 https://www.vedomosti.ru/politics/news/2018/09/06/780094-shvetsii-k-severnomu-potoku-2 39
Gas representative of the Christian Democratic Party and member of the European Parliament L. Adaktusson points out that “Russia does not observe the international law”, and that “other methods of securing electricity production must be found, not to be dependent on Russia”. A representative of the Left Party in the Swedish Parliament and a member of the Parliamentary Council of the EU J. Holm is convinced that the pro-Russian project may be terminated, but new laws should be adopted for this. By the way, Russia lost the proceedings to the EU in the World Trade Organization (WTO) on applying the Third Energy Package48 on the main points of claims49. In particular, as the WTO Arbitrators have decided50, one of the key provisions of the Third Energy Package on the inability of gas extractors/sellers to own main gas pipelines simultaneously (i.e., the European principle of separation of activities) should apply to Russian gas pipelines in Europe.
48
This refers to the proceedings initiated by Russia in the WTO in 2014. https://www.dw.com/ru/%D0%B2%D1%82%D0%BE-%D0%B7%D0%B0%D0%BD%D1%8F%D0%BB%D0%B0%D1%81%D1%82%D0%BE%D1%80%D0%BE%D0%BD%D1%83-%D0%B5%D1%81-%D0%B2%D1%81%D0%BF%D0%BE%D1%80%D0%B5-%D1%81-%D1%80%D1%84-%D0%BE%D1%82%D1%80%D0%B5%D1%82%D1%8C%D0%B5%D0%BC%D1%8D%D0%BD%D0%B5%D1%80%D0%B3%D0%B5%D1%82%D0%B8%D1%87%D0%B5%D1%81%D0%BA%D0%BE%D0%BC%D0%BF%D0%B0%D0%BA%D0%B5%D1%82%D0%B5/a-45042335 50 https://www.wto.org/english/tratop_e/dispu_e/cases_e/ds476_e.htm#bkmk476r 49
Electricity and Nuclear Safety In the framework of preparation for competitive electricity market, the NEURC approved a number of important decisions regarding the abolition of regulatory acts in the current electricity market from July 2019. As of August 1, 24 out of 25 oblenergos have unbundled into distribution and power supply companies and have been licensed by a universal service provider. On August 3, at a Government meeting, the Ministry of Energy and Coal Industry submitted a plan for stabilizing the situation in the coal sector, which identifies the first steps towards pulling the coal mining industry out of the crisis.
Directive 2009/72/EC of 13 July 2009 on common rules for the internal market in electricity and repealing Directive 2003/54/EC (Art. 269, Chapter 11, Section IV of the EU-Ukraine Association Agreement) As of August 1, 24 out of 25 oblenergos (excluding Krymenergo and Sevastopolenergo) reported to the NEURC on the implementation of measures to separate electricity suppliers by the distribution system operators. Measures are taken in accordance with the requirements of Section 13 of Section XVII of the Final and Transitional Provisions of the Law of Ukraine On the Electricity Market51. These companies have received licenses for the supply of electricity to the consumer, and, for 2 years, they will serve as a provider of universal services in the assigned territory. PJSC Cherkasyoblenergo did not split. On August 23, the NEURC held a meeting devoted to the introduction of the new electricity market52. At the meeting, decisions were taken regarding the regulatory legal acts for the operation of the new market and a number of the NEURC resolutions regulating the wholesale supply and electricity transmission activities, resolutions on the purchase of electricity by producers, the formation of tariffs, the methodology of calculation of the wholesale market price of electricity, etc. were recognized as losing their validity with the start of work of the new market - No. 894 On invalidating certain resolutions of the National Electricity Regulatory Commission of Ukraine, National Electricity Regulatory Commission of Ukraine, National Energy Regulatory Commission, National Energy and Public Utilities Regulatory Commission53. In order to introduce a new electricity market, the Resolution No. 893 On Approval of the Methodology for Determining Available Throughput Capacity of Interstate Crossings (Interstate Electric Networks of Ukraine)54 was adopted, and the following draft resolutions were approved: On Approval of the Procedure for Settlement of Disputes Arising between Business Entities Carrying out Activities in the Energy and Public Utilities Areas55, On approval of the Procedure for Forming a Tariff for Dispatching (Operational-Technological) Management Services56, On Approval of the Procedure for Returning to the Customer by the Transmission System Operator, Distribution System Operators of the Funds Involved as a Fee for Connecting for the Creation (Construction) of Electric Networks of the Linear Part of the Connection (subject to the inclusion of such assets in the regulatory base of assets)57, On approval of the Procedure for the Establishment (Formation) of the Tariff for Electricity Transmission Services58.
Regulation 714/2009/EC of 13 July 2009 on conditions for access to the network for cross-border exchanges in electricity and repealing Regulation 1228/2003 (Art. 271, Chapter 11, Section IV, EUUkraine Association Agreement) 51
http://www.nerc.gov.ua/?news=7842 http://www.nerc.gov.ua/?news=7865 53 http://www.nerc.gov.ua/?id=34017 54 http://www.nerc.gov.ua/?id=34002 55 http://www.nerc.gov.ua/data/filearch/Proekty/2018/pr_255/pr_255-2018_280-2017.pdf 56 http://www.nerc.gov.ua/data/filearch/Proekty/2018/pr_258/pr_258-2018.pdf 57 http://www.nerc.gov.ua/data/filearch/Proekty/2018/pr_257/pr_257-2018.pdf 58 http://www.nerc.gov.ua/data/filearch/Proekty/2018/pr_259/pr_259-2018.pdf 52
Electricity and Nuclear Safety On August 23, NPC Ukrenergo held an open discussion on conditions and the price of electricity supply during the provision of emergency assistance between the system operators of neighboring countries in the new electricity market. In the new model of the market, NPC Ukrenergo, as the Settlement System Administrator, will conclude such contracts instead of SE Energorynok according to the tariffs established by the NEURC59.
Directive 2009/72/EC of 13 July 2009 on common rules for the internal market in electricity and repealing Directive 2003/54/EC (Art. 269, Chapter 11, Section IV of the EU-Ukraine Association Agreement) Investment component in tariffs On August 1, an open discussion of comments and proposals to the draft resolution of the NEURC On Approval of the Amendments to the Resolution of the National Energy and Public Utilities Regulatory Commission of 23 February 2017 No. 224 was held at the NEURC. The resolution applies to amendments to the Procedure for Approval, Adjustment and Withdrawal of the Investment Component in the Tariff for Electricity. The comments were given to DTEK Dniproenergo and related to the technical issues of the organization and completion of investment programs. The comments were rejected by the Regulator in agreement with the parties60. On August 10, NPC Ukrenergo held a public discussion of tariffs for the electricity transmission by main and interstate electric networks, including the fee for the central dispatch control of the UES and the investment program for 2019. It is proposed to increase the tariff to 0.17034 UAH/kWh. In the new market, NPC Ukrenergo, as the TSO, has to purchase electricity to compensate for the technological costs of electricity required for its transmission by electric networks, as well as to purchase auxiliary services. These factors and the need for network upgrades caused the increase of tariffs61. Consideration of complaints between market participants and consumers and control over the activities of licensees The NEURC issued an explanation regarding the procedure for reviewing consumer complaints regarding the services of connecting to the distribution network operator and transmission system operator to the electric networks62. Consumer complaints are considered in accordance with the Law of Ukraine On Citizens’ Appeals, and in case of disputes between business entities conducting activities in the fields of energy and public utilities, their consideration shall be in accordance with the procedure provided for in Section XIII of the Distribution System Code (the NEURC Resolution of 14.03.2018 No. 31063). In order to establish the actual circumstances of the case and resolve disputes, the Regulator has the right to demand from the participants of the disputes the necessary documents, explanations and other information. The Regulator may also hold preliminary hearings with the involvement of interested parties and, if necessary, carry out unscheduled inspections. The procedure for conducting preliminary hearings is determined by the Regulator. The decision taken by the NEURC during the pre-trial consideration of the dispute is binding on the parties to the dispute and may be appealed in court. On August 12, the Procedure for Monitoring Compliance by Licensees Conducting Activities in the Fields of Energy and Public Utilities, Legislation in Relevant Areas and Licensing Conditions, approved by the NEURC Regulation of 14.06.2018 No. 428 entered into force64. In the field of electricity, this Procedure applies to the following licensees: - on the activities relating to production, transmission, distribution, 59
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Electricity and Nuclear Safety supply of electricity to the consumer; on the wholesale electricity supply; on activities relating to the functions of a guaranteed buyer; on activities relating to resale of electricity (trader activity); on activities relating to the functions of the operator of the market. Changes to the structure of tariffs On August 7, the NEURC approved draft decisions on the revision of the structures and levels of tariffs for the production, transmission, distribution and supply of electricity in connection with the increase in wages to employees. It is stipulated that the increase in wages for workers in the electric power industry may be 10.3%65. As a result of the discussion, a number of draft resolutions were published, for example, on amendments to certain NEURC resolutions regarding the revision of tariffs for electricity and/or thermal energy production for CHPPs in connection with the increase of the wage fund66, as well as amendments to the NEURC Resolution of 28.12.2017 No. 1512 (revision of the tariff for electricity transmission by SE NPC UKRENERGO for 2018 as part of the increase of the wage fund)67, regarding the revision of electricity distribution tariffs and electricity supply tariffs for a number of enterprises in terms of increasing the wage fund68. Resolutions on the increase of the part of the wage fund for NNEGC Energoatom and PrJSC Ukrhydroenergo were also published. Regulation of the construction and operation of the direct line, connection fee On 23 August 2018, an open discussion of the comments and proposals submitted to the draft NEURC Resolution On Approval of the Procedure for the Approval of the Construction and Operation of the Direct Line was held69. The procedure will provide for the possibility of using an alternative way of supplying electricity in a direct line directly from the manufacturer to the consumer, provided that it is economically feasible to use such a connection or in the absence of the possibility of connecting to the distribution network electric networks. On August 30, the draft NEURC Resolution On Approval of the Procedure for Returning to the Customer by the Transmission System Operator, Distribution System Operators of the Funds Involved as a Connection Fee for the Creation (Construction) of Electric Networks of the Linear Part of the Connection (subject to the inclusion of such assets in the regulatory base of assets) was made public. In accordance with clause 16 of Article 21 of the Law of Ukraine On the Electricity Market, the funds received by the transmission system operator, distribution system operators as a connection fee for the creation (construction) of electric networks of the linear part of the connection shall be returned to the customer, provided that such assets, after switching of the corresponding transmission system operator, distribution system operator to the stimulating regulation is attributed by the relevant transmission system operator, distribution system operator to the regulatory base of assets. Return by the transmission system operator, distribution system operators involved as a connection fee for the creation (construction) of electric networks of the linear part of the connection shall be carried out in accordance with the procedure established by the NEURC70. Changes to the license terms On August 31, the NEURC published draft resolutions on changes to the License Conditions for Conducting Business Activities on the Electricity Transmission and Distribution7172. The need for changes in licensing conditions is due to the fact that not all licensees can be owners of electricity distribution activities and ownership of such property may belong to the state or territorial community. It is also
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Electricity and Nuclear Safety proposed to assign the obligation to repair fixed assets to the licensee in full, as stipulated by the structure of the tariff (amounts of financing) and in accordance with the Distribution System Code. Changes to the Licensing Terms for the Electricity Transmission are intended to ensure that the transmission system operator receives such a license before the start of the new electricity market. This will enable it to conclude in advance the contracts that are mandatory for the operation in the new electricity market.
Art. 339, Chapter 1, Section V of the EU-Ukraine Association Agreement, Coal Market According to the Ministry of Energy and Coal Industry, in January-July 2018, coal mines in Ukraine reduced the production of ordinary coal by 9.1% (by 1.906 million tons) compared to the same period in 2017 - up to 19.142 million tons. According to the report, coking coal production decreased by 10.4% to 3.621 million tons, energy - by 8.7%, to 15.52 million tons73. On August 3, at a government meeting with the leadership of the Ministry of Energy and Coal Industry and the Ministry of Finance, the Ministry of Energy and Coal Industry submitted to the Government a plan for stabilizing the situation in the coal sector. The plan identifies priority actions for pulling the coal mining industry out of the crisis and is consistent with the strategic objectives of reducing imports and strengthening its own energy independence of the country. At the same time, investments in the coal industry are needed to implement the defined tasks to increase the production and provide rhythmic work in the sector. The Ministry of Energy and Coal Industry, by order of the Government, is developing real financial proposals to stabilize the situation in the coal industry74. On August 17, the President Petro Poroshenko signed the Law of Ukraine On Amendments to the Law of Ukraine On the State Budget of Ukraine for 2018, adopted by the Parliament on July 13, 2018. The law provides for the state budget of Ukraine for 2018 to send budget allocations under a special fund established to the Ministry of Energy and Coal Industry of Ukraine under the budget program Support for the Implementation of the Electricity Market for a total amount of UAH 1.4 billion to state support to coal mining enterprises to cover the part of the expenses related to the cost of finished commodity coal products, by changing the name of the said budget program to the State Support for Coal Mining Enterprises for the Partial Cover of Expenses Related to the Cost of Finished Commodity Coal Products. The implementation of the Law will reduce the social tension among miners, as the funds of this budget program will be directed also to pay off the arrears of wages of this category of persons75. On August 30, a working meeting was held with the representatives of the European Commission at the Ministry of Energy and Coal Industry under the chairmanship of the Director General of the Directorate of Fossil Fuels Maksym Fedotov. During the meeting, the issues of the re-conversion of coal regions and the implementation of projects, which will enable to address the socio-economic problems of mining towns, were discussed. The reserves of coal mines are eventually exhausting, so it is important to plan new investment projects and explore the possibility of using the existing base for their implementation. According to Maksym Fedotov, the Ministry of Energy and Coal Industry adheres to the Plan of Priority Actions of the Government and the Action Plan for the Implementation of the Stage of the Energy Sector Reform (up to 2020) of the Energy Strategy of Ukraine until 2035. “It is not about the immediate closure of mines, but about the prospective development of the region, a strategic vision. We have to think now what we should do with these mines from now onwards,� Maksym Fedotov said. As a result of the meeting, it was agreed to start work in the regions with the heads of local authorities in order to create a platform for planning the future process of reconversion and developing an appropriate road map76.
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Electricity and Nuclear Safety Art. 342, Chapter 1, Section V of the EU-Ukraine Association Agreement, Cooperation in the Nuclear Field, Directive No. 96/29/Euratom, Council Directive No. 2006/117/Euratom, Council Directive No. 2003/122/Euratom As of August 1, 2018, representatives of the OSCE mission continue to monitor the security level at KhNPP. On July 31 of this year, representatives of the OSCE special monitoring mission in Ukraine met with leaders and specialists of Khmelnytskyi NPP responsible for ensuring nuclear, radiation safety and physical protection of the nuclear power plant. During the meeting, members of the OSCE mission in Chernivtsi discussed security issues at the nuclear facility77. At the meeting of the National Energy and Public Utilities Regulatory Commission, held in the form of a public hearing on 7 August 2018, the draft Resolution On Amendments to the NERCP Regulation No. 1487 of 28.12.2017 regarding the revision of tariffs for the issue of electricity produced by the hydroelectric power stations of SE NAEK Energoatom, for 2018, in terms of the increase of the wage fund was approved and the draft Resolution On Amendments to the NEURC Regulation No. 1488 of 28.12.2017 regarding the revision of tariffs for the issue of electricity and thermal energy generation produced at nuclear power plants of SE NNEGC Energoatom, in terms of the increase of the salary fund was approved. In pursuance of the requirements of the Procedure for Conducting an Open Discussion of Draft Decisions of the National Energy and Public Utilities Regulatory Commission, approved by the Resolution of 30.06.2017 No. 866, the NEURC shall inform on the public discussion of the draft of the above-mentioned NEURC resolution on amending the NEURC resolution, which will last until 4 September 20187879. On August 7, Energoatom’s press service reported on the implementation of “post-Fukushima” measures at the Power Unit No. 4 of the Rivne NPP. One of these measures is to reduce the concentration of hydrogen in a sealed shell (SS) for beyond-the-design accidents, namely the establishment of 104 hydrogen recombiners. The purpose of their implementation is to increase the level of safety of power units. Passive autocatolytic hydrogen recombiners will help reduce its concentration in the protective sealed shell of the reactor plant and prevent the accumulation of explosive gas that can occur in the event of a severe accident at the reactor plant80. The implementation of similar measures was completed on August 6 at the power unit No. 5 of the Zaporizhzhya NPP81. On August 9, Rivne NPP announced its readiness to comply with the request of the NEURC for publication of environmental impact information for the previous year. Such a requirement of the NEURC is caused by the new Law On the Electricity Market, which will come into force in July 2019, according to which electricity facilities of different generations should disclose information on their website, namely: about the share of each energy source used for the production of electricity and the impact on the natural environment caused by the production of electricity82. On August 9, the meeting of the Balance Board of Energoatom was held in Kyiv. According to the Board’s conclusions, according to the results of the first half of 2018, separated units of NNEGC Energoatom fully performed the scheduled tasks for the production and supply of electricity. Due to over-planned production and reduction of electricity consumption for own needs for the first half of 2018, the Company additionally received USD 382.6 million of commodity products. The achievements and issues of operation of the company were discussed at the meeting and, according to the results of 77
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Electricity and Nuclear Safety the Balance Board meeting, the work of all the separate units of Energoatom in the first half of 2018 was considered satisfactory83. On August 14-15, at Rivne NPP, discussion of the use of TVZ-WR nuclear fuel at the Power Unit 3 and other issues of potential cooperation with Westinghouse Electric Sweden AB (Sweden) was held. During the discussions, the participants outlined the main stages of switching of the Power Unit No. 3 of RNPP to TVZ-WR. A particular attention was paid to possible cooperation with Westinghouse on the design of the fuel for VVER-440 reactors. Issues of modernization of the in-core instrumentation system (ICIS) for ensuring the control of the active zone with the TVZ-WR, as well as the construction of an additional cell of the diesel-generator power plant at the Power Unit No. 4 of RNPP were discussed84. On August 17, at the premises of PE Atomremontservis, there was a regular 73rd meeting of the Council of Chief Engineers of the NPP (CEP) of NNEGC Energoatom under the chairmanship of O Shavlakov, the first vice president-technical director of the Company. During the CEP Council, the NPP specialists analyzed violations in the work of the NPP for the past quarter, the results of their investigation, and also discussed the implementation of the Corporate Program for the Re-equipment of the Repair and Production Complex. According to the results of the meeting, the CEP Council has identified the priority tasks of the separate units of Energoatom for the next quarter85. On August 16, the implementation of the Collective Agreement in the first half of 2018 was discussed at the Southern Ukrainian Energy Complex. An assessment of the implementation of mutual obligations of the administration and labor collective contained in the Collective Agreement of NNEGC Energoatom was given at the extended meeting of the administration and trade union active members of the workshops and units of PE SUNPP. A particular attention in the reports and speeches of the participants of the meeting was paid to ensuring the stable work of the industry and the social guarantees of nuclear producers. Among the most urgent topics is the struggle for a fair tariff for a “nuclear” kilowatt, raising the level of wages, building housing, attracting and securing young personnel at the NPP. Regarding the general results of the implementation of the Collective Agreement in the first half of 2018, the staff of the South Ukrainian Energy Complex has coped with its main task of producing electricity in compliance with the conditions of safe operation86. On August 22, Energoatom’s press service informed that Zaporizhzhya NPP started implementing the necessary measures for the OSART mission. The plant will host the international expert team station on May 2020. Representatives of the international agency will verify compliance with IAEA rules and requirements and assess the safety of the nuclear power plant. The inspection will be carried out in 12 areas of activity important for the safety of the NPP. Working groups will be created for each of them. The Directorate of SE NNEGC Energoatom and PE Scientific and Technical Center, which carries out scientific and technical support of the nuclear industry, are involved in the preparation. Experts will check the state of the equipment and documentation that must fully comply with international standards87. On August 29, a technical visit and inspection of the IAEA, which controls the use of safeguards on nuclear material under the Agreement between Ukraine and the IAEA, were carried out at Rivne NPP. The inspection was carried out on time and in full, the IAEA inspectors confirmed that the purpose of the inspections was achieved88.
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Electricity and Nuclear Safety Art. 342, Chapter 1, Section V of the EU-Ukraine Association Agreement, Cooperation in the Nuclear Field. Cooperation is aimed at solving the problems that arose as a result of the Chernobyl disaster, as well as the decommissioning of the Chernobyl NPP On August 14, during a technical meeting in Vienna, the experts of the IAEA, SAEZM and State Corporation UkrDO Radon discussed constructive approaches to building a repository for the interim storage of glassed high-level radioactive waste coming back from the Russian Federation. Previously, Ukraine shipped spent nuclear fuel form its NPPs for the intermediate storage and processing to the Russian Federation. Now, according to the agreements concluded earlier, we have to accept the accumulated high-level radioactive wastes received as a result of recycling for storage. The Ukrainian side presented for consideration by specialists the conceptual approaches to the design of a repository of glassed high-level radioactive waste at the Vector complex. According to the results of the meeting, the IAEA experts will prepare their recommendations for Ukraine regarding the concept of the repository for glassed high-level radioactive waste89. On August 16, SAEZM, State Enterprise NNEGC Energoatom and the Kyiv Region State Administration signed an agreement on the financing of social facilities during the construction of the CSFSF for Ukrainian NPPs. In accordance with the terms of the contract, 10% of the estimated cost of the repository should be directed at the construction and repair of socially important facilities in the Poliske and Ivankiv districts and the city of Slavutych. Improving the infrastructure of cities around the exclusion zone will contribute to their revival and development. It is important for the agency to provide professionals living here with workplaces and decent living conditions to slow down the outflow of the population from these regions90.
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Energy Efficiency and Social Issues Monitoring the progress of implementation of energy efficiency requirements in Ukraine has recorded significant progress in the development of regulatory legal acts to comply with existing legislation. At the same time, the situation with the financing of energy efficiency measures, especially the reform of the management of the financial resources allocated to protect vulnerable consumers through subsidies, remains extremely difficult and practically does not improve even in spite of the approaching new heating season. An information request to the responsible executive authorities, sent by the Task Force, recorded the results of the regulatory work on the implementation of the laws of the “package of energy efficiency� as of the end of August. In the response received, the Ministry of Regional Development informed about the development of a significant number of draft acts in most areas of this work, which is a significant success. At the same time, the actual introduction of new rules, such as the launch of the Energy Efficiency Fund or the optimization of housing subsidies, can only be expected.
Directive 2012/27/EC on energy efficiency According to the State Agency on Energy Efficiency and Energy Saving, after a series of measures to resolve disagreements in the project positions with all interested central executive authorities, the draft Law of Ukraine On Energy Efficiency was once again sent to the Ministry of Regional Development of Ukraine in April 2018 for re-approval. The relevant agency reports that the draft law has now undergone changes as a result of comments from interested authorities, but there is currently no public access to the revised text. Energy audits and energy management systems (Article 8) According to the response of the State Agency for Energy Saving and Energy Efficiency to the relevant information request, the lack of systematic approach in the work of the local authorities in terms of increasing energy efficiency of budgetary institutions leads to losses of thermal energy up to 30%. In pursuance of the Order of the Cabinet of Ministers of Ukraine No. 732 of 26.04.2017, adopted by 2017, which approved the action plan for the implementation of energy management systems in budget institutions, the following provisions were developed and approved by the executive authorities: 1) on the functioning of energy management systems in budgetary institutions; 2) on monitoring of consumption of fuel and energy resources by budgetary institutions; 3) on the distribution and use of funds to stimulate the introduction of energy management systems in budgetary institutions; 4) on establishing limits on energy consumption by budget institutions. The indicated documents, in accordance with the above-mentioned order of the Government, were sent to all local executive authorities and local self-government authorities. In addition to indirect work on the development of these provisions and procedures, the State Agency on Energy Efficiency and Energy Saving also reports on active direct work with regional authorities. In particular, 42 Memorandums on partnership between the Agency and local authorities (21 regional state administrations and 21 cities) were signed on introduction of energy management systems in budget institutions, and energy monitoring was introduced in 93 cities and 9 regions of Ukraine. Accounting (Article 9) In response to a request for information on the status of the implementation of the Law of Ukraine On Commercial Metering of Thermal Energy and Water Supply, the relevant ministry specifies that a part of subordinate regulatory legal acts have been adopted, while some are at the stage of approval, in particular: adopted regulatory legal acts:
Energy Efficiency and Social Issues ✓ Government resolution of 06.06.2018 No. 444 On approval of the procedure of informing the operator of the external network of owners (co-owners) of the building about the intention of installing a commercial metering unit; ✓ Government resolution of 13.06.2018 No. 447 On approval of the procedure for transferring contributions for installing commercial metering units, paid by communal services consumers and owners (co-owners) of premises equipped with individual heating and/or hot water supply systems, by utility services performer to the operator of external engineering networks; ✓ Government resolution of 26.07.2018 No. 603 of the CMU On Approval of the Procedure for monitoring the state of equipment with commercial metering units and exchange of information between the State Agency on Energy Efficiency and Energy Saving and the State Service for Food Safety and Consumer Protection regarding violation of the requirements of the legislation regarding the conformity of the measuring equipment with commercial metering units to the technical regulations, terms of their installation or replacement; ✓ Order of the Ministry of Regional Development of 05.06.2018 No. 129 On Approval of the Methodology for Determining the Amount of Contributions for the Installation, Maintenance and Replacement of Commercial Metering Units and Their Distribution among Public Utility Users and Owners (Co-Owners) of Premises Equipped with Individual Heating and/or Hot Water Supply Systems, registered with the Ministry of Justice of 26.06.2018 under No. 754/32206. During August 2018, the Ministry of Regional Development approved and submitted for registration two more necessary orders to the Ministry of Justice of Ukraine: ✓ Order of the Ministry of Regional Development of 09.08.2018 No. 206 On approval of the procedure for equipping buildings with commercial metering units and engineering systems equipment to ensure such metering; and ✓ Order of the Ministry of Regional Development of 09.08.2018 No. 205 On approval of the procedure for equipping separate premises in buildings with distributive metering units/heat distributing devices and equipment of engineering systems to ensure such accounting; In addition, in August 2018, the Ministry of Regional Development approved and, in accordance with the procedure, provided the interested executive authorities with the approval of the following draft documents: ✓ Government Resolution On approval of the procedure for determining the technical capacity of installing units of distribution metering of thermal energy and economic feasibility of installing heat distributors was sent to the State Regulatory Service by the letter of the Ministry of Regional Development and Trade of 20.08.2018 No. 7/9-8520; ✓ Government Resolution On amendments to the Resolution of the Cabinet of Ministers of Ukraine of August 6, 2014 No. 409 (On Establishing State Social Standards in the Area of Housing and Communal Services) was sent by the letter of the Ministry of Regional Development of 08.08.2018 No. 7/10-8061 to the Ministry of Justice for legal expert examination; ✓ Government Resolution On amendments to the Procedure for Submission of Measuring Instruments for Periodic Verification, Maintenance and Repair was submitted to the Cabinet of Ministers of Ukraine by the letter Ministry of Regional Development of 08.08.2018 No. 12/20-9-2000; ✓ Order of the Ministry of Regional Development On Approval of the Procedure for Registering the Consumer’s Metering Tool is being prepared for submission to an agreement with the interested central executive authorities; ✓ Order of the Ministry of Regional Development On approval of the methodology of distribution among consumers of the volume of the services consumed in the building (combined with the draft Act on Approving the Methodology for Determining and Calculation of the Corrective Coefficients for Distribution of the Volume of Consumed Thermal Energy among Separate Consumers (in the external corridors (premises), apartments (premises), placed on the first and last floors of the building, etc.) was sent by the letter of the Ministry of Regional Development of 30.05.2018 No. 7/9-5374 for approval to
Energy Efficiency and Social Issues the State Regulatory Service of Ukraine. A conciliation meeting was held to process the comments received on 07.08.2018. In general, the dynamics of the development and adoption of a subordinate framework for the implementation of the Law of Ukraine On Commercial Metering of Thermal Energy and Water Supply can be positively assessed. With the preservation of the pace of this work, as well as the absence of fundamental deficiencies in the quality of the documents being developed, the completion of this work can be expected by the end of the year. Energy service market (Article 18) According to the information provided by the State Agency on Energy Efficiency and Energy Saving on the implementation of the tasks and measures of the Government’s Order On the National Action Plan for Energy Efficiency for the Period up to 2020, it can be stated that, at least in terms of the development of the market for energy service contracts, the planned targets are generally achieved. This is evidenced by the data on the national base of potential ESCO facilities (more than 16 thousand institutions, of which 3.7 thousand – facilities of central executive authorities)91. The term of the energy service contracts, on average, is 5-8 years, and after the implementation of the planned measures, the buildings can save up to 25% of the thermal energy. In addition, within the framework of the new UNDP project Elimination of Barriers to Promoting Investment in Energy Efficiency of Public Buildings in Towns of Ukraine through the Application of the ESCO Mechanism92, efforts have been initiated to stimulate the use of the energy service mechanism in 10 Ukrainian towns and to introduce ESCO support mechanisms. To date, 7 memorandums have been signed on a partnership between the Agency and central executive authorities on the introduction of an energy service mechanism to improve the energy efficiency of buildings of state institutions (Ministry of Education; Ministry of Defense; State Agency of Water Resources; State Service for Food Safety and Consumer Protection, State Statistics Service93, National Commission for Regulation of Financial Services, SES94). On the implementation of the provisions of the mentioned memorandums, explanatory measures are carried out regarding the features of the ESCOmechanism for central executive authorities. In 2017, since the launch of procurement of energy services through the PROZORRO system (October 2017), 180 ESCO tenders, of which 45 were successfully completed, were announced and 3 ESCO contracts amounting to UAH 2.8 million were concluded. During the first half of 2018, 240 ESCO-tenders have already been announced, of which 153 have been successfully completed, and 144 ESCO contracts worth more than UAH 119 million have been concluded. In general, since the launch of procurement of energy services through PROZORRO system, 450 ESCO tenders were announced, of which 198 were successfully completed, and 154 ESCO contracts worth about UAH 158 million were concluded95. It should be noted that the Kyiv region has a leading position on the implementation of the ESCOmechanism, where 66 tenders were held and 13 ESCO contracts were signed. For example, in the town of Skvyra, there are 3 more ESCO contracts for the introduction of energy-efficient measures in kindergartens. These projects will reduce gas consumption in institutions by an average of 30% per year96. National Energy Efficiency Fund, Financing and Technical Support (Article 20) In response to a request from the OPORA Civic Network to the Ministry of Regional Development on the state of development and adoption of subordinate regulatory legal acts aimed at the implementation of 91
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Energy Efficiency and Social Issues the Law On the Energy Efficiency Fund, the Ministry reported that 9 of 10 subordinate acts have been drafted. The last act, namely the draft resolution of Cabinet of Ministers of Ukraine On Approval of the Procedure for Determining the Amount of Saving of Expenses for the Financing of Housing Subsidies to the Population for Payment of Electricity, Natural Gas, Services of Heat, Water Supply and Drainage, apartment rent (maintenance of houses and buildings and adjacent areas), removal of domestic waste and liquid sewage, is currently being developed and is being prepared for submission to the Government for consideration. However, given the significant social sensitivity and the lack of a clear position of the Cabinet of Ministers regarding the reform of the entire housing and communal subsidy system, the current status of developing this latest document may take quite a long time. In practice, today the work of the Energy Efficiency Fund is only at the stage of preparing the competition for positions in the Supervisory Board. In accordance with the established procedure97, this process will continue 65 calendar days after the announcement of the start of selection, which, is expected to be made by the Ministry of Regional Development in September. Thus, consumers will not be able to use the products of the Fund this year, including multi-apartment building co-owners associations (MBCA). The situation with the functioning of a targeted government program, known as “warm loans”, remains steadily difficult. This mechanism of attracting funds from the state budget on the terms of co-financing by co-owners of multi-apartment buildings of energy efficiency measures in the housing stock was again completely suspended after only 3 months of functioning in a restricted mode. Already traditionally, the reason for the suspension was the lack of financing: the provided funds in the amount of UAH 400 million, UAH 190 million of which were directed to MBCAs/housing associations is exhausted. The repetition of this situation led to dissatisfaction among the MBCAs and the expert community by the actions of the authorities, which, knowing about the systematic suspension of the program, is in no hurry to decide on the provision of additional funds under the “warm loans” program. In this regard, in late August, the public and representatives of the MBCA movement launched the all-Ukrainian “MBCAs for Warm Loans” campaign, which provides for public appeals to government officials and MPs with a request to provide funding for the program98. Instead, for the purpose of support of MBCAs, the State Agency on Energy Efficiency and Energy Saving constantly works with local authorities on the development of local programs. The relevant Agency initiated the signing of strategic documents for long-term cooperation between the Agency and local authorities (regional state administrations, regional councils, city councils) - Memorandums on Partnership in the Field of Energy Efficiency of Residential Buildings. By the indicated documents, the parties confirmed the intention to introduce an additional (local) mechanism for reducing payments for “warm” loans (due to the reimbursement of a part of the amount/percent from local budgets). Today, the State Department on Energy Efficiency and Energy Saving has attracted all heads of local authorities (regional state administrations, regional councils, city councils) to such cooperation by signing 25 bilateral quadripartite memoranda. For their implementation in 2018, 345 local programs were introduced in all regions of Ukraine. For implementation of such programs in 2018, local budgets provide for more than UAH 132 million, of which more than UAH 24 million have already been reimbursed to 26 thousand participants of such programs. In addition, today about 40 local programs are under development and adoption. According to the Agency’s statistical data on the results of the National Survey conducted with the support of the USAID and IFC projects among 127 MBCAs/housing associations - participants and 1,000 private households, 100% of MBCAs/housing associations and 94% of private households have confirmed the positive effect of participating in the Program. In particular, 70% of MBCAs and 65% of private households have achieved energy savings and reduced the cost of HCS after participating in the program. 80% -84% of respondents also felt the improved comfort of housing.
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Energy Efficiency and Social Issues The results of the survey showed that for MBCA/housing association being a Program participant, energy savings can reach 10% to 24%, depending on the measures taken (and in the case of implementation of integrated projects, consumption of FER is reduced at times), electricity savings reaches 71%. For private households, energy-efficient measures can reduce gas consumption by 12% 40% by various measures. The study of economic efficiency carried out by the State Organization Institute of Economics and Forecasting of the National Academy of Sciences of Ukraine indicates that the implementation of the Program has a significant impact on the economy as a whole (through attracting additional funds from the population to enterprises engaged in the manufacture of metalplastic windows, boilers, materials for insulation of houses, etc.), as well as state and local budgets.
Directive 2010/31/EC on the energy performance of buildings According to the Ministry of Regional Development in accordance with the Law of Ukraine On Energy Efficiency of Buildings, some regulatory legal acts have been adopted, but a number of others are at the stage of approval, in particular: adopted regulatory legal acts: ✓ Government Resolution of 11.04.2018 No. 265 On approval of the list of buildings for industrial and agricultural purposes, energy facilities, transport, communications and security, warehouse premises, which are not subject to minimum requirements for energy efficiency of buildings and which are not subject to certification of energy efficiency of buildings; ✓ Government Resolution of 26.07.1948 No. 602 On approval of the Procedure for the Exchange of Information Between Central Executive Authorities, attestation commissions in the process of independent monitoring, professional certification and maintenance of databases of certificates, specialists and reports; ✓ Government Resolution of 26.07.2018 No. 206 On Approval of the Procedure for the Professional Certification of Persons intending to carry out activities on certification of energy efficiency and inspection of engineering systems; ✓ Order of the Ministry of Regional Development as of 06.10.2017 No. 267 On determining the buildings, which are often visited by citizens, registered with the Ministry of Justice of 17.04.2018 under No. 1329/31197; ✓ Order of the Ministry of Regional Development of 21.03.2018 No. 62 On approving the procedure for the maintenance of databases of reports on the results of the examination of engineering systems, certified energy auditors and experts in the examination of engineering systems, energy certificates, registered with the Ministry of Justice of 17.04.2018 under No. 457/31909; ✓ Order of the Ministry of Regional Development of 11.07.2018 No. 169 On approval of the Methodology for Determining the Energy Efficiency of Buildings, registered with the Ministry of Justice of 16.07.2018 under No. 822/32274; ✓ Order of the Ministry of Regional Development of 16.07.2018 No. 170 On Approval of the Methodology for Determining the Cost Effective Level of Energy Efficiency of Buildings, registered with the Ministry of Justice of 16.07.2018 under No. 823/32275; ✓ Order of the Ministry of Regional Development of 11.07.2018 No. 171 On Approval of the Procedure for the Use of Calculating Elements of Software for the Determination of the Energy Efficiency of Buildings, registered with the Ministry of Justice of 16.07.2018 under No. 823/32276; ✓ Order of the Ministry of Regional Development of 11.07.2018, No. 172 On Approval of the Procedure for Certification of Energy Efficiency, the Energy Certificate Form, registered with the Ministry of Justice of 16.07.2018 under No. 823/32277; ✓ Order of the Ministry of Regional Development of 11.07.2017 No. 137 On Approval of the Methods of Inspection of Engineering Systems, registered with the Ministry of Justice of 16.07.2018 under No. 823/32278. drafts:
Energy Efficiency and Social Issues ✓ Government Resolution On approval of the procedure for acquiring the status of a selfregulatory organization in the field of energy efficiency and approving the model articles of association of a self-regulatory organization in the field of energy efficiency – the opinion of the Ministry of Justice was received and is being prepared for submission to the Government; ✓ Government Resolution On Making Amendments to the List of Construction Works that do not require documents that give the right to perform them, and after the completion of which the facility is not subject to acceptance into operation - the comments from the interested central executive authorities are being processed; It was during August, 2018 that the projects of the three orders of the Ministry of Regional Development and Trade were finalized and submitted for coordination with other related central executive bodies: ✓ Order of the Ministry of Regional Development On Approval of the Procedure for Independent Monitoring of Energy Certificates - the draft act - was sent for re-approval to the interested central executive authorities by letters of 17.08.2008 No. 7/9-8419 and No. 7/9-8418 of the Ministry of Regional Development; ✓ Order of the Ministry of Regional Development On approval of the procedure for reviewing reports on the examination of engineering systems - the draft act was sent to the interested central executive authorities for approval by letters of the Ministry of Regional Development of 17.08.2008 No. 7/9-8417, No. 7/9-8415 and No. 7/9-8413; ✓ Order of the Ministry of Regional Development On approval of the procedure for independent monitoring of the reports on the results of the inspection of engineering systems – the draft act was sent for approval to the interested central executive authorities by letters of the Ministry of Regional Development of 17.08.2018 No. 7/9-8412, No. 7, 9-8414 and No. 7/9-8416. Among other things, the relevant Agency calls on institutions of higher education to set up commissions for the professional certification of energy auditors who will be able to receive the right to conduct certification of energy efficiency of buildings and inspection of engineering systems. In addition, on the Agency’s website, there is a list of 20 institutions of higher education, with which voluntary agreements on cooperation in coordinating the work on the creation of attestation commissions were concluded99100.
Directive 2010/30/EC on the indication by labelling and standard product information of the consumption of energy and other resources by energy-related products During August, draft resolutions were made publicly available on the official website of the State Agency on Energy Efficiency and Energy Saving. The purpose of adopting draft regulations is to improve the energy and environmental characteristics of electrical and electronic household and office equipment, which will eventually allow the most energy-consuming goods and goods with the most negative impact on the environment to be eliminated from the market. In particular, the following projects have been made public101: ✓ On approval of the Technical regulations on requirements for eco-design for electricity consumption by electric and electronic household and office equipment in the “standby”, “off” modes and “standby” network mode; ✓ On approval of the Technical regulations on requirements for eco-design for household drum drying machines; ✓ On approval of the Technical regulations on requirements for eco-design for household ovens, cooking surfaces and kitchen hoods;
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Energy Efficiency and Social Issues ✓ On approval of the Technical regulations on requirements for eco-design for household dishwashers; ✓ On approval of the Technical regulations on requirements for eco-design for household washing machines. Among other things, based on the results of reporting of the State Agency on Energy Efficiency and Energy Saving to the Government on the implementation of the National Energy Efficiency Action Plan by 2020, as of August 2018, the state of adoption of technical regulations is at a final stage, in particular, 23 technical regulations in the field of eco-design and energy labeling have been developed and adopted, as well as 10 projects of such regulations are at different stages of internal bureaucratic approvals: ✓ Technical regulations on requirements for eco-design for vacuum cleaners; ✓ Technical regulations on requirements for eco-design for the consumption of electricity by external power sources in the mode of unloading and their average efficiency in the active mode; ✓ Technical regulations on requirements for eco-design for simple digital TV receivers; ✓ Technical regulations on requirements for eco-design for electricity consumption by electric and electronic household and office equipment in “standby”, “off” modes and “standby” network mode; ✓ Technical regulations on requirements for eco-design for household washing machines; ✓ Technical regulations on requirements for eco-design for household drum drying machines; ✓ Technical regulations on requirements for eco-design for household dishwashers; ✓ Technical regulations on requirements for eco-design for TVs; ✓ Technical regulations on requirements for eco-design for computers and computer servers; ✓ Technical regulations on requirements for eco-design for household ovens, cooking surfaces and cooker hoods.
Social issues Since July 2018, the Ministry of Social Policy has created a separate platform where every citizen can learn about granting a subsidy and its amount. As the developers point out, the Unified State Register of Residential Subsidy Recipients enables to effectively control the funds allocated from the state budget to help the most vulnerable groups of consumers in the payment for public utilities, to increase the targeting of assistance and to improve the effectiveness of the program of housing subsidies. In order to find out about the mentioned information, it is necessary to enter data directly on the website https://subsidii.ioc.gov.ua102.
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Environment and Renewable Energy Sources The Government of Ukraine approved the draft Law On Ozone-Depleting Substances and Fluorinated Greenhouse Gases, developed by the Ministry of Environment and Natural Resources103. The Ministry of Environment, in turn, continues to work on the issue of waste management - in August, the draft National Waste Management Plan by 2030 was made public for public discussion104. In addition, the Ministry of Environment is preparing for the practical implementation of the Law of Ukraine On Strategic Environmental Assessment - and published methodological recommendations on the implementation of strategic environmental assessment of state planning documents. In August, the Ministry of Environment posted on its official website its reports for the 1st and 2nd quarter of 2018 on the implementation of the action plan to implement the Association Agreement between Ukraine and the EU on the environment105.
Directive 2001/42/EC on the assessment of the effects of certain plans and programs on the environment (codification) (Article 363 of the AA) In pursuance of the Law of Ukraine On Strategic Environmental Assessment, adopted by the Verkhovna Rada of Ukraine in March 2018, the Ministry of Environment approved and published on its official page the Methodical Recommendations on the Implementation of Strategic Environmental Assessment of State Planning Documents106. In this regard, the Ministry of Environment sent official letters to local self-government authorities, city councils and regional state administrations with explanations regarding public involvement in the implementation of the strategic environmental assessment procedure. The recommendations are developed in accordance with the provisions of the law itself and relate to the definition of the need for the SEA, the stages of the SEA, the scope of the SEA, the preparation of a SEA report, public discussion and consultations, cross-border consultations, taking into account the SEA results and decision making. Additionally, SEA Analytical Tools, Current Status Analysis, and Impact & Alternatives Analysis are added as annexes to the recommendations.
Directive 2009/28/EC on the promotion of the use of energy from renewable sources and amending and subsequently repealing Directives 2001/77/EC and 2003/30/EC (Article 338 of the Association Agreement) Ukrainian institutions are trying to establish effective co-operation with both domestic and foreign partners to attract new experience and investments to implement “green” projects in Ukraine. Meanwhile, discussions are continuing on draft laws on the introduction of an auction system in the field of renewable energy. Regarding the main draft law No. 8449, the AMCU intends to send to the Verkhovna Rada Committee on Fuel and Energy Complex the proposals on bringing some of the provisions of the said draft law in line with the legislation on state aid of Ukraine and the EU acquis, since at present some of these provisions are not in line with them. This month, the Office of the National Investment Council and the Ukrainian Wind Energy Association signed the memorandum of cooperation107. The goal of the partnership is to work together on reforming the green energy sector’s legislation, sharing information and experience, and developing partnerships with representatives of the RES sector in other countries in order to attract new investments into the Ukrainian economy. 103
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Environment and Renewable Energy Sources In addition, the State Agency on Energy Efficiency and Energy Saving and the Ministry of Energy and Industry of the OAU also signed the memorandum on cooperation108 in the field of energy efficiency and renewable energy. The countries are planning to implement joint projects in these fields and share experiences.
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Oil In August 2018, the activities of state authorities on the implementation of Ukraine’s international obligations in the oil sector were in fact stopped. Evidence of this is the lack of reports on the progress of the development or adoption of new regulatory legal acts on official websites of the vast majority of responsible executives. Work on the “roadmap for conducting international oil and gas auctions”, the approval of which was announced after the Cabinet of Ministers meeting on July 26, 2018, has not yet been completed. The draft Government resolution on the selected model of minimum reserves of oil and oil products has not been approved. The drafting of the new version of the Subsoil Code, as well as the implementation of the requirements of Directive 98/70/EC on quality of gasoline and diesel fuel and Directive 94/63/EC on the control of volatile organic compound emissions from oil products reservoirs, has been discontinued.
Directive 2009/119/EC imposing an obligation on Member States to maintain minimum stocks of crude oil and/or petroleum products (Article 338 of the Association Agreement) Consideration by the members of the Working Group on the Formation of Strategic Oil and Oil Reserves at the State Agency of Reserve of the Draft Law On Minimum Reserves of Oil and Oil Products prepared by experts of the EU Technical Assistance Project “Assisting Ukraine in the Process of Implementing Energy Sector Reforms in Accordance with the Country’s International Commitments” is scheduled for the first decade of September 2018. According to the task 129109, the plan for its submission to the Cabinet of Ministers (including amendments to legislative acts and drafts of other documents necessary for the implementation of the selected model of minimum reserves) should take place no later than October 1, 2018 (responsible authorities - State Agency of Reserve, Ministry of Economic Development and Trade, Ministry of Finance, Ministry of Energy and Coal Industry). However, now we can say that it will not be possible to comply with the established deadline with the fulfillment of all requirements of the Regulation of the Cabinet of Ministers of Ukraine110. Directive 99/32/EC111 relating to a reduction in the sulfur content of certain liquid fuels and amending Directive 93/12/EC, as amended by Regulation (EC) 1882/2003 and Directive 2005/33/EC As of 5 September 2018, there was no information on the state of preparation of the following drafts: - Technical regulations on requirements for aviation gasoline and jet fuel, the work of which was scheduled to be completed by 1 January 2018 (task 32112), included in the plan113 (paragraph 6, paragraph 2, deadline for implementation - December 2018); - resolution114, by which amendments to the Technical regulations115 should be made in order to bring it into compliance with the requirements of Directives 98/70/EC and 2016/802/EC (task 1702.4 of the action plan116); - Technical regulations concerning liquefied petroleum gas requirements developed by the interagency working group established on 12 March 2018 by the order of the Ministry of Energy and Coal Industry No. 159117, and should be submitted for approval by 1 November 2018. The National Standardization Work Program for 2018118 provides for to adopt 29 standards required to harmonize the requirements for the quality and safety of hydrocarbon fuels in Ukraine and the EU by the 109
http://zakon5.rada.gov.ua/laws/show/497-2018-%D1%80 http://zakon.rada.gov.ua/laws/show/950-2007-%D0%BF 111 Directive 99/32/EC (other designation – 1999/32/EC) has been codified on 11 May 2016 (Directive 2016/802/EC). 112 http://www.me.gov.ua/Documents/Download?id=d8571d0b-53a6-4ade-88c1-75579be0cb39 113 http://mpe.kmu.gov.ua/minugol/doccatalog/document?id=245282918 114 http://www.drs.gov.ua/wp-content/uploads/2018/05/6795-10.05.18.pdf 115 http://zakon.rada.gov.ua/go/927-2013-п 116 https://www.kmu.gov.ua/ua/npas/pro-vikonannya-ugodi-pro-asociaciyu-mizh-ukrayinoyu-z-odniyeyi-storoni-ta-yevropejskimsoyuzom-yevropejskim-spivtovaristvom-z-atomnoyi-energiyi-i-yihnimi-derzhavami-chlenami-z-inshoyi-storoni 117 http://www.mev.gov.ua/sites/default/files/docfiles/nakaz_no_159_vid_12.03.2018.pdf 118 http://uas.org.ua/wp-content/uploads/2018/02/2018-02-20.zip 110
Oil end of the year. As of 5 September 2018, for three out of them, the first wordings were developed, for - the final one, 14 have been returned for the revision, the work on 11 standards has not been started119.
Directive 94/63/EC on the control of volatile organic compound emissions resulting from the storage of patrol and its distribution from terminals to service stations, as amended by Regulation (EC) 1882/2003 (Annex XXX, Articles 360-363, 365, 366 of the AA) As of 5 September 2018, in open sources there was no information on the status of the fulfillment of the task 1695 of the plan120, by which the Ministry of Environment was entrusted with the following tasks by 31 October 2018: - to develop a draft technical regulation that establishes the requirements for storage, transportation and reload of fuel, relevant equipment and service stations; - to conduct an inventory of “terminals for storage and loading of gasoline”; - to develop recommendations for the control of the operation of petrol stations and “reservoirs for storage of oil products of small size”. Directive 94/22/EC on the conditions of granting and using authorizations for prospection, exploration and production of hydrocarbons (Annex XXVII, Articles 279, 280, 341 of the AA) Earlier it was reported121 that on 26 July 2018, the Government approved the Roadmap for Conducting International Oil and Gas Auctions122. It can be assumed that, in the Cabinet of Ministers, it implies the draft Government resolutions made public by the State Service of Geology and Mineral Resources on 9 July 2018: - On the implementation of the pilot project on the implementation of the procedure for conducting auctions for the sale of special permits for the use of subsoil by electronic auction123, submitted to the State Regulatory Service on 17 July 2018124 (work plan of the Ministry of Environment and Natural Resources125, section 1, task 3, priorities of the Government, the deadline - August 2018); - On Amendments to the Methodology for Determining the Value of Reserves and Resources of Minerals of the Deposit or Subsoil Plot Provided for Use126 (the term of implementation is postponed to October127 and December 2018128129), rejected by the State Regulatory Service (decision No. 202 of 7 May 2018130) through non-compliance by the developers with the key principles of the state regulatory policy and resubmitted on 17 July 2018131; - On Approval of the Procedure for Disposing Geological Information, Amendment of Certain Resolutions of the Cabinet of Ministers of Ukraine and Recognizing the Resolution of the Cabinet of Ministers of Ukraine of 13 June 1995 No. 423132 submitted to the State Regulatory Service on 10 July 2018133 as expired.
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Oil However, as of 5 September 2018, these documents were absent among the documents approved by the Cabinet of Ministers134. At the same time, in the letter of the State Regulatory Service of the Ministry of Environment and Natural Resources of Ukraine of 13 August 2018 No. 8185/0/20-18135, it was stated that they were submitted to the Government for consideration and adopted without compliance with the procedure of approval and contrary to the results of public discussion. As before, the state of preparation of the following draft Government resolutions by the Ministry of Environment and Natural Resources is still unknown: - On Amendments to the Methodology for Determining the Initial Sales Price at the Auction for a Special Permit for the Use of Subsoil136 (the deadline for implementation is postponed to November 2018137), which should introduce a differentiated approach to the evaluation depending on the purpose of the works (exploration or extraction), the degree of reliability of geological materials (resources or reserves) and type of deposits depending on the complexity of extraction (traditional or non-traditional methods); - On Amendments to the Classification of Reserves and Resources of Mineral Resources of the State Subsoil Fund (the deadline is postponed to September 2018)138, which aims to ensure that subsoil users can apply the provisions of 2009 United Nations Framework for Fossil Energy and Mineral Resources (UNFC 2009). The classification139 was proposed to be supplemented by paragraph 28, which provides for the use for the needs of the subsoil user of UNFC 2009, CRIRSCO, PRMS international standards, etc. upon his application140; - on ensuring the possibility for business entities to submit documents for obtaining/extending the validity of special permits for the use of subsoil in electronic form with the use of electronic digital signature, as well as the ability to track the status of the submitted documents through the applicant’s personal account (section 1, task 2, priorities of the Government plan141, the deadline for implementation is October 2018). Article 279 of the Association Agreement as regards ensuring equity of access and exercising of the activities of prospecting, exploring and producing hydrocarbons Since, in accordance with clause 3 of Article 279, each party must ensure equal access of all subsoil users to subsoil plots, on 2 August 2018, after the direct protocol order of the Prime Minister of 21 July 2018, the State Service of Geology and Mineral Resources has extended the validity of another 31 special permits for the use of subsoil, owned by PJSC Ukrgazvydobuvannya142. The decision on suspension of validity of 39 permits, judicial cancellation of 12 permits and the provision of additional terms for the elimination of violations of 8 permits for use of subsoil have also been approved. On 13 August 2018, the State Service of Geology and Mineral Resources published information on the participants of the first auction for the sale of special permits for use of four oil and gas fields (Yavorivska, Lipovetska, Chernytska in the Lviv region and Surmachivska in the Sumy region) scheduled for 25 October 2018143. The intention to take part in the auction on geological study (with experimental and industrial development) of Lipovetska field was displayed by PE Kalan and LLC Nadra Energy, Chernytska - LLC Stryinaftogaz and LLC Nadra Energy144. As expected, applications for the development of Yavorivska and Surmachivska fields were not received. On 1 September 2018, a “pilot project for conducting electronic auctions for the use of subsoil” was to be launched145. However, since, as of 5 September 2018, no relevant decisions were made by the Government,
134
https://www.kmu.gov.ua/ua/npasearch http://www.drs.gov.ua/wp-content/uploads/2018/07/8185-13.08.18.pdf 136 http://zakon0.rada.gov.ua/laws/show/1374-2004-%D0%BF 137 https://menr.gov.ua/news/32415.html 138 Ibid (section 1, task 4). 139 http://zakon2.rada.gov.ua/laws/show/432-97-%D0%BF 140 http://www.geo.gov.ua/sites/default/files/imce/proekt_pkmu_pro_zminy_do_pkmu_no432_okk.doc 141 https://menr.gov.ua/news/32415.html 142 http://www.geo.gov.ua/derzhgeonadra-prodovzhat-ukrgazvidobuvannyu-shhe-31-specdozvoliv/ 143 http://www.geo.gov.ua/zagalna-startova-cina-44-naftogazovix-dilyanok-stanovitime-3-mlrd-griven/ 144 http://www.geo.gov.ua/derzhgeonadra-oprilyudnili-informaciyu-pro-uchasnikiv-pershix-naftogazovix-aukcioniv-v-2018-roci/ 145 http://www.geo.gov.ua/naftogazovi-dilyanki-derzhegeonadra-vistavlyat-na-elektronni-torgi-v-lyutomu-2019-roku/ 135
Oil preparations for the “first international auction� to be held in January-February 2019, covering 44 oil and gas fields146, will start much later. According to private companies147, exploration and production of hydrocarbons in Ukraine are hampered by: - unstable legislation (the procedure for the issuance of special permits for the use of subsoil has been changed 13 times since 2011, the fiscal regime - three times since 2014); - absence of auctions for the sale of special permits for the use of subsoil (during the 2017 and nine months of 2018, the State Service of Geology and Mineral Resources did not hold any tenders); - lack of qualitative geological information (there is no single open register, information is not digitized, its acquisition is possible only with the permission of the State Service of Geology and Mineral Resources); - availability of liquidated or mothballed wells of state-owned companies on licensed areas of private entities; - lack of the possibility of joint development of complex areas that are owned by state companies. Article 337 of the Association Agreement in terms of informing and protecting customers from unfair selling practices, and access to oil products, including liquefied petroleum gas, for consumers, including for the most vulnerable citizens On 1 September 2018, the Government resolution148, which regulates the issue of determining the starting price for liquefied natural gas, which is being implemented at specialized auctions for the needs of the population, came into force. By 1 October 2018, it will continue to be determined at the price of natural gas for the needs of the population (adjusted for different heat of combustion), which is calculated on the basis of the regulation149.
146
http://www.geo.gov.ua/kabmin-zatverdiv-proekt-vprovadzhennya-elektronnix-torgiv-z-prodazhu-specdozvoliv-nakoristuvannya-nadrami/ 147 https://mind.ua/openmind/20187492-privablivij-gazovidobutok-5-krokiv-nazustrich-investoram 148 https://www.kmu.gov.ua/ua/npas/pro-postanovi-kabinetu-ministriv-ukrayini-vid-22-bereznya-2017-r-187 149http://zakon2.rada.gov.ua/laws/show/187-2017-%D0%BF
Business Climate Within three months, the second competition for 2 vacant posts of the NEURC members remains blocked through lawsuits. There is a problem with the attraction of large investments in renewable generation through the lack of sufficient maneuvering capacity. Ukrenergo is looking for ways to solve it, however, the NEURC has not yet approved decisions. Against this background, a brief report on the results of ProZorro system activities has been published, and the Ministry of Economic Development and Trade intends to reduce the pressure on the business by settling the criteria for determining the list of enterprises for inspections.
Article 277 on the Regulator (provisions of Directives 2009/72/EC and 2009/73/EC in parts on the regulatory body) The second competition for the replacement of 2 vacant posts of the NEURC members remains blocked by two lawsuits of the applicants D. Vovk and A. Hudachenko, whom the competition commission did not accept for participation in the selection. In the case No. 826/6556/18, the plaintiff D. Vovk, a second court hearing took place. The plaintiff did not appear, without giving evidence, asked to postpone the consideration of the case on the grounds that he was on leave150. Instead, it is known that D. Vovk was dismissed by the Decree of the President of Ukraine No. 148/2018 in May151. The next meeting is scheduled for the beginning of September. According to A. Hudachenko’s claim against the NEURC Competitive Committee, two cases are currently initiated - No. 826/8097/18 and No. 826/7309/18. Within the first one the court suspended the competition for vacant posts of the NEURC members. The next meeting is also scheduled for the beginning of September. The meeting of the Competition Commission for the selection of candidates for the posts of the NEURC members was held. In particular, they discussed the above-mentioned legal cases, and also informed that the special verification of participants in the second competition was almost completed: 15 out of 20 candidates were checked152.
Article 378-379 as regards creating favorable conditions for business The Ministry of Economic Development and Trade of Ukraine initiated the draft resolution of the Cabinet of Ministers of Ukraine On Approval of the Criteria for Assessing the Degree of Risk from Conducting Business Activities to Assess Compliance with the Requirements of Technical Regulations and Determine the Frequency of Implementation of Planned State Supervision (Control) Measures by the Ministry of Economic Development and Trade153. It is proposed to determine the following criteria for assessing the degree of risk from the conduct of economic activity. The degree of risk depends on the timing of the conduct of economic activities, the existence of violations of the requirements of the law, the presence of appeals to decisions of economic entities, conducting business activities to assess compliance with the requirements of technical regulations. The frequency of conducting of planned inspections by the Ministry of Economic Development and Trade is proposed to be determined depending on the degree of risk from the conduct of economic activities: no more than once in 2-5 years.
Articles 150, 153 on public procurement (as regards the implementation of certain provisions of Directives 2014/24/EC, 2014/25/EC, 89/665/EEC and 92/13/EEC)
150
http://www.reyestr.court.gov.ua/Review/76301233 https://www.president.gov.ua/documents/1482018-24230 152 http://kompek.rada.gov.ua/uploads/documents/30455.pdf 153 http://www.me.gov.ua/Documents/Detail?lang=uk-UA&id=d57d2103-191e-47d5-81620992f30784be&title=ProektPostanoviKabinetuMinistrivUkrainiproZatverdzhenniaKriteriivZaYakimiOtsiniutsiaStupinRizikuVidProvadzhenniaGospodarskoiDiialnostiZOtsinkiVidpovidnostiVimogamTekhnichnikhReglamentivI ViznachatsiaPeriodichnistZdiisnenniaPlanovikhZakhodivDerzhavnogoNagliadu-kontroliuMinisterstvomEkonomichnogoRozvitkuITorgivli 151
Business Climate For two years, since the launch of ProZorro electronic public procurement system, more than 2 million tenders with an expected value of UAH 1.5 trillion have already been announced. By regions, by number, 49% of tenders are announced in 5 regions: Kyiv, Dnipropetrovsk, Donetsk, Kharkiv and Odessa regions. Fuel, including oil products, as well as electricity are among the most popular procurements154.
Article 337-339 on cooperation in the field of energy (as regards the implementation of certain provisions of Directives 2012/27/EC, 2009/72/EC and 2009/73/EC) Ukrenergo, the operator of the united energy system, provided the NEURC with proposals for amending the Transmission System Code regarding renewable energy development opportunities. The amendments relate to the integration of large volumes of RES on the “island of Burshtyn TPP”. As is well known, for investors in the field of RES, there are certain risks of impossibility to implement projects through the lack of sufficient capacity to balance the connection of a significant number of “green” generation facilities. This problem poses a risk for operation and safety and satisfies the demand for joining the claimed number of RES facilities155.
154
https://prozorro.gov.ua/news/2-roki-prozorro-viznacheni-regioni-lideri-zakupivel2 https://ua.energy/osnovni-podiyi/ukrenergo-initsiyuye-zminy-do-zakonodavstva-shhob-rozshyryty-mozhlyvosti-dlyaintegratsiyi-zelenyh-v-energoostrovi-burshtynskoyi-tes/ 155
Methodology ANNEX 1. List of Articles of the Association Agreement and Acquis Subject to Monitoring The group Electricity and Nuclear Security conducts monitoring and assessment of issues relating to electricity, nuclear energy, coal and elimination of consequences of the Chornobyl accident. Acquis concerned: Article 269, Chapter 11, Title IV, Directive 2009/72/EC (market-related provisions) Article 270, Chapter 11, Title IV, Regulation (EC) 714/2009 Article 271, Chapter 11, Title IV, Regulation (EC) 714/2009 Article 273, Chapter 11, Title IV, Regulation (EC) 714/2009, Directive 2009/72/EC Article 274, Chapter 11, Title IV, Regulation (EC) 714/2009, Directive 2009/72/EC Article 305, Chapter 14, Title IV, Directive 2009/72/EC, Directive 2005/89/EC Article 338, Chapter 1, Title V Article 338, Chapter 1, Title V, Cooperation Agreements with IFIs Article 339, Chapter 1, Title V, coal market Article 342, Chapter 1, Title V, cooperation in the nuclear safety sector, Council Directive 2014/87/Euratom, Council Directive 2013/59/Euratom, Council Directive 2006/117/Euratom Article 342, Chapter 1, Title V, cooperation in the nuclear safety sector The group Gas conducts monitoring and assessment of issues relating to gas, in particular, the implementation of the following acquis: Articles 338, 341, Directive 2009/73/EC (market-related provisions) Articles 338, 341, Regulation (EC) 715/2009 Articles 338, 341, Directive 2004/67/EC + Annex XXVI (Early Warning Mechanism), Articles 275 (Unauthorised taking of energy goods), 276 (Interruption), 309 and 314 (resolution of disputes) of the Association Agreement Chapter 11 Trade-related energy, in particular Articles 269 (Domestic regulated prices), 270 (Prohibition of dual pricing), 271 (Customs duties and quantitative restrictions), 272 (Transit) and 273–274 (Transport, cooperation on infrastructure) Annex XXVII to Chapter 1 Energy cooperation, including nuclear issues — Directive 94/22/EC + Articles 279– 280 (Access to and exercise of the activities of prospecting, exploring for and producing hydrocarbons, and licensing conditions) The group Energy Efficiency and Social Issues conducts monitoring and assessment of the implementation of the following acquis: Directive 2010/30/EU Directive 2010/31/EU Directive 2006/32/EU Directive 2012/27/EU Directive 2009/72/EC (social issues) Articles 338, 341 of the Association Agreement Directive 2009/73/EC (social issues) Articles 338, 341 of the Association Agreement
Methodology The group Environment and Renewable Energy Sources conducts monitoring and assessment of the implementation of the following acquis: Article 363, Directive 2011/92/EU Article 363, Directive 2001/42/EC Article 363, Directive 2003/42/EC Article 363, Directive 2003/35/EC Directives 85/337/EEC and 96/61/EC Article 363, Directive 2008/50/EC Article 363, Directive 1999/32/EC Article 363, Directive 94/63/EC Article 363, Directive 2009/147/EC Article 363, Directive 2010/75/EU Article 338, Directive 2009/28/EC The group Oil conducts monitoring and assessment of the implementation of the following acquis: Directive 2009/119/EC Directive 94/22/EC Directive 98/70/EC Articles 274, Chapter 11 of the Association Agreement (Trade-related energy) Articles 275, Chapter 11 of the Association Agreement (Trade-related energy) Articles 276, Chapter 11 of the Association Agreement (Trade-related energy) Articles 279, Chapter 11 of the Association Agreement (Trade-related energy) Articles 280, Chapter 11 of the Association Agreement (Trade-related energy) Article 337 of the Association Agreement Article 338 of the Association Agreement Article 339 of the Association Agreement The group Business Climate conducts monitoring and assessment of the implementation of the following acquis: Article 27, Chapter 11 (Title IV TRADE AND TRADE-RELATED MATTERS) of the Association Agreement Article 28, Chapter 11 (Title IV TRADE AND TRADE-RELATED MATTERS) of the Association Agreement Article 29, Chapter 11 (Title IV TRADE AND TRADE-RELATED MATTERS) of the Association Agreement Article 88, Chapter 6 (Title IV TRADE AND TRADE-RELATED MATTERS) of the Association Agreement Article 93, Chapter 6 (Title IV TRADE AND TRADE-RELATED MATTERS) of the Association Agreement Articles 97-102, Chapter 6 (Title IV TRADE AND TRADE-RELATED MATTERS) of the Association Agreement Article 104, Chapter 6 (Title IV TRADE AND TRADE-RELATED MATTERS) of the Association Agreement Article 105, Chapter 6 (Title IV TRADE AND TRADE-RELATED MATTERS) of the Association Agreement Article 107, Chapter 6 (Title IV TRADE AND TRADE-RELATED MATTERS) of the Association Agreement Articles 144-147, Chapter 7 (Title IV TRADE AND TRADE-RELATED MATTERS) of the Association Agreement Chapter 8 (Title IV TRADE AND TRADE-RELATED MATTERS) of the Association Agreement and the Directive 2014/25/EU Article 255, Chapter 10 (Title IV TRADE AND TRADE-RELATED MATTERS) of the Association Agreement Article 256, Chapter 10 (Title IV TRADE AND TRADE-RELATED MATTERS) of the Association Agreement Article 258, Chapter 10 (Title IV TRADE AND TRADE-RELATED MATTERS) of the Association Agreement
Methodology Article 263, Chapter 10 (Title IV TRADE AND TRADE-RELATED MATTERS) of the Association Agreement Article 267, Chapter 10 (Title IV TRADE AND TRADE-RELATED MATTERS) of the Association Agreement Article 277, Chapter 11 (Title IV TRADE AND TRADE-RELATED MATTERS) of the Association Agreement and Directives 2003/54/EC and 2003/55/EC (as regards the regulatory authority) Articles 355-359, Chapter 5, (Title V ECONOMIC AND SECTOR COOPERATION) of the Association Agreement and Directive 2008/92/EC Article 379, Chapter 10 (Title V ECONOMIC AND SECTOR COOPERATION) of the Association Agreement
Glossary ANNEX 2. Glossary (Short Description) of EU Acquis Subject to Implementation Monitoring
Gas Directive 2009/73/EC concerning common rules for the internal market in natural gas and repealing Directive 2003/55/EC This Directive establishes common rules for the transmission, distribution, supply and storage of natural gas. The rules established by this Directive apply to natural gas, liquefied natural gas (LNG), biogas and gas from biomass. They aim to achieve a competitive, secure and environmentally sustainable market. This Directive provides for compulsory functional unbinding (supply) of transmission system operators (TSO) in vertically integrated undertakings. EU Member States must ensure that all customers are entitled to freely choose natural gas supplier and can easily change supplier within three weeks. At the same time, Member States may impose on suppliers selling gas to household customers obligations which may relate to security, including security of supply, regularity, quality and price of supplies, and environmental protection, including energy efficiency. Regulation (EU) No. 715/2009 on conditions for access to the natural gas transmission networks and repealing Regulation (EC) No. 1775/2005 This Regulation sets common rules for access to gas transmission systems, LNG terminals and storage facilities taking into account the special characteristics of national and regional markets. The document establishes the procedures of certification of transmission system operators, as well as development, elaboration and implementation of network codes (with the participation of the European Network of Transmission System Operators — ENTSO — for Gas). The key objective of this Regulation is to ensure that all market participants have free and non-discriminatory access to relevant infrastructure and capacities. Directive 2004/67/EC concerning measures to safeguard security of natural gas supply This Directive establishes a common framework within which Member States must define general, transparent and non-discriminatory security of supply policies compatible with the requirements of a competitive market, and clarify the roles and responsibilities of market players (including in case of emergency). The government must specify minimum security of supply standards to be complied with by the market players, prepare and update national emergency measures, identify “vulnerable” customers and ensure adequate security for them, establish cooperation with the European Commission and other stakeholders.
Electricity and Nuclear Security Council Directive 2014/87/Euratom of 8 July 2014 amending Directive 2009/71/Euratom establishing a Community framework for the nuclear safety of nuclear installations The Directive establishes a European framework for maintaining and promoting consistent improvement of nuclear safety and its regulation. It sets an ambitious safety goal across the EU in order to prevent accidents and avoid radioactive waste from nuclear installations. The directive applies to any nuclear installation subject to licensing. Council Directive 2013/59/Euratom laying down basic safety standards for protection against the dangers arising from exposure to ionising radiation The Directive establishes basic safety standards to protect the health of employees, the general public, patients and others from the dangers of exposure to ionising radiation. The Directive applies to any planned, existing or emergency situation which involves a risk to ionising radiation. In particular, it applies to: the manufacture, production, processing, handling, disposal, use, storage, holding, transport, import to and export from the EU of radioactive material; the manufacture and operation of electrical equipment emitting ionising radiation; human activities withnatural radiation sources that could lead to a significant increase in the exposure of employees or the public, such as the exposure of space crew to cosmic radiation; domestic exposure to radon gas in indoor air and external exposure to gamma radiation from
Glossary building materials; managing emergency exposure situations that require measures to protect the public and workers. Directive 2009/72/EC concerning common rules for the internal market in electricity and repealing Directive 2003/54/EC This Directive establishes common rules for the generation, transmission, distribution and supply of electricity. It also lays down universal service obligations and the rights of electricity consumers and clarifies competition requirements. Open internal market enables all consumers freely to choose their suppliers and all suppliers freely to deliver to their customers (free movement of goods, the freedom of establishment and the freedom to provide services). At the same time, this Directive sets stricter requirements to unbundling of transmission system operators (TSO) in vertically integrated undertakings. It also contains consumer rights provisions, reinforces and clarifies the functions and powers of regulatory authorities. Regulation (EC) No. 714/2009 on conditions for access to the network for cross-border exchanges in electricity and repealing Regulation (EC) No. 1228/2003 This Regulation establishes the rules for cross-border exchanges of electricity with the view to enhancing competition and achieving harmonization within the internal market in electricity. Comparing to the previous Regulation No. 1228/2003, this Regulation contains additional provisions on certification of transmission system operators (TSO), introduction of network codes and publication of information by system operators. It also clarifies that the European Network of Transmission System Operators for Electricity (the ENTSO for Electricity) is responsible for the management of electricity transmission networks to allow trading and supplying electricity across borders within the EU. Directive 2005/89/EC concerning measures to safeguard security of electricity supply and infrastructure investment This Directive establishes measures aimed at safeguarding security of electricity supply so as to ensure the proper functioning of the internal market for electricity, an appropriate level of interconnection between Member States, an adequate level of generation capacity and an adequate balance between supply and demand. It establishes a framework within which Member States are to define general transparent and non-discriminatory policies on security of electricity supply compatible with the requirements of a competitive market for electricity. They must define and publish roles and responsibilities of competent authorities and all relevant market actors. In implementing these measures, Member States are supposed to guarantee continuity of electricity supplies, explore possibilities for cross-border cooperation in relation to security of electricity supply, reduce the long-term effects of the growth of electricity demand, ensure diversity in electricity generation, encourage energy efficiency and the adoption of new technologies, ensure regular renewal of networks. Council Directive 2006/117/Euratom on the supervision and control of shipments of radioactive waste and spent fuel This Directive authorizes transboundary shipments of spent fuel between Member States for processing, requires prior authorization for transboundary shipments of radioactive waste and spent fuel where such fuel is moved from, through the territory of or to a Member State. This Directive also requires return of radioactive waste to its country of origin.
Energy Efficiency and Social Issues Directive 2010/30/EU on the indication by labelling and standard product information of the consumption of energy and other resources by energy-related products This Directive regulates labelling of energy-related products and provision of information to consumers relating to their consumption of electric energy. It applies to products which have a direct or indirect impact on the consumption of energy and on other resources during use. Suppliers placing products on the market must ensure that such products are labelled with the information about their consumption of energy and other resources. Suppliers must also produce technical documentation to include: a general description of the product; the results of design calculations carried out; test reports; the references
Glossary allowing identification of similar models. The technical documentation must be available for inspection purposes for a period ending five years. Suppliers must provide the labels and product-related information free of charge to dealers, and the latter must display labels properly, in a visible and legible manner. Directive 2010/31/EU on the energy performance of buildings This Directive promotes the improvement of the energy performance of buildings within the Union, taking into account outdoor climatic and local conditions. It lays down minimum requirements, common general framework for a methodology and covers energy used for heating, hot water, cooling, ventilation and lighting. National authorities must establish reasonable minimum requirements to energy efficiency to be reviewed every five years. They also establish a system of certification of the energy efficiency. Such certificates provide information to prospective buyers or tenants on the energy performance of buildings, and advice on enhancing it. Directive 2012/27/EU on energy efficiency, amending Directives 2009/125/EC and 2010/30/EU and repealing Directives 2004/8/EC and 2006/32/EC This Directive establishes a common framework of measures for the promotion of energy efficiency within the Union in order to ensure the achievement of the Union’s 2020 20% headline target on energy efficiency. Such measures include: • annual 1.5% energy savings resulting from implementing energy efficiency measures by distribution network operators and suppliers; • enhancing energy performance of heating systems, installation of double-glazed windows and roof insulation; • purchase of buildings, products and services with high energy-efficiency performance by public bodies; • annual energy modernization of at least 3% of the total floor area of buildings owned and occupied by public bodies; • expanding rights and possibilities of consumers in the area of energy management which includes easy and free access to the metering data on the actual consumption; • national incentives for small and medium-sized enterprises to conduct energy audit that should be mandatory for all large enterprises; • monitoring of the energy performance of new energy generating capacities.
Environment and Renewable Energy Sources Directive 2011/92/EU on the assessment of the effects of certain public and private projects on the environment (codification) This Directive introduces an important instrument of the environmental policy — environmental impact assessment. Member States must ensure, first of all, that projects likely to have significant effects on the environment (by virtue, inter alia, of their nature, size or location) are made subject to a requirement for development consent and an assessment with regard to their effects. This Directive contains two lists of projects subject to environmental impact assessment (from nuclear power stations, gas pipelines, etc., to large pig farms). An important element is stricter publicity requirements, including to the public participation in the environmental impact assessment. Directive 2001/42/EC on the assessment of the effects of certain plans and programmes on the environment This Directive introduces an important instrument of environmental policy — strategic environmental assessment. An environmental assessment must be carried out of certain plans and programmes during their preparation. Such assessment includes preparation of the environmental report (that must contain detail information on the likely significant environmental effects and reasonable alternatives) and consultations with the relevant authorities and the public. Where a transboundary effect is possible, an assessment and consultations in a transboundary context must be carried out.
Glossary Directive 2003/4/EC on public access to environmental information and repealing Council Directive 90/313/EEC This Directive implements the provisions of the Aarhus Conventions relating to public access to environmental information. It aims to guarantee public access to environmental information owned by public authorities — both upon request and through active dissemination thereof. Environmental information must be made available to an applicant within one month after the receipt by the public authority of the applicant’s request. A request for environmental information may be refused if the request is manifestly unreasonable, or formulated in too general a manner, concerns an unfinished document or internal communications. Directive 2003/35/EC providing for public participation in respect of the drawing up of certain plans and programmes relating to the environment and amending with regard to public participation and access to justice Council Directives 85/337/EEC and 96/61/EC This Directive addresses the implementation of the Aarhus Convention in respect of public participation and access to justice. It sets the requirements to the introduction of mechanisms of informing the public, holding consultations with the public and taking account of comments and proposals of the public in decision-making. Member States must ensure that the public is given early and effective opportunities to participate in the preparation and modification or review of the plans or programmes required to be drawn up under the provisions listed in Annex I of the Directive. Directive 2008/50/EC on ambient air quality and cleaner air for Europe This Directive establishes ambient air quality and ambient air quality management standards. For this purpose, it establishes upper and lower assessment thresholds, target and threshold values, sets objectives for the reduction of the effect of particulate matters, defines and classifies zones and agglomerations, introduces the systems of informing the public and ambient air quality assessment with respect to various pollutants. Where, in a given zone or agglomeration, there is a risk that the levels of pollutants will exceed the alert thresholds, short-term action plans must be drawn up. Directive 1999/32/ЕС relating to a reduction in the sulphur content of certain liquid fuels and amending Directive 93/12/EEC, as amended by the Regulation (EC) No. 1882/2003 and Directive 2005/33/EC The purpose of this Directive is to reduce the emissions of sulphur dioxide resulting from the combustion of certain types of liquid fuels and thereby to reduce the harmful effects of such emissions on man and the environment. It sets the maximum sulphur content in heavy fuel oil, gas oil and marine gas oils. It also specifies methods of sampling and analysis of sulphur content in fuel to check compliance with the requirements. Directive 2009/147/EC on the conservation of wild birds (Article 4.2) This Directive relates to the conservation of all species of naturally occurring birds in the wild state in the European territory of the Member States. The mechanism of conservation of wild birds provides for the protection of their habitats; protection and use of birds; prevention of harm that can be caused by invasive species; research and reporting. According to Article 4.2, special protection areas need to be established based on ornitological criteria. Special measures also need to be taken to protect migratory species naturally occurring in the territory of a particular state, especially in wetlands. Directive 2010/75/EU on industrial emissions (integrated pollution prevention and control) This Directive lays down rules on integrated prevention and control of pollution arising from industrial activities. It requires using the integrated approach to activities referred to in Annex I thereto. All installations covered by this Directive must prevent or reduce pollution due to using best available techniques, efficient energy use, prevention and control of emissions. Transparency of the integrated approach is ensured by the public participation. Directive 2009/28/EC on the promotion of the use of energy from renewable sources and amending and subsequently repealing Directives 2001/77/EC and 2003/30/EC
Glossary This Directive provides for setting mandatory national targets for the overall share of energy from renewable sources in the overall energy balance to take account of statistics and potential of each particular country. These targets include the achievement of a 20% share of energy from renewable sources in overall Energy Community energy consumption by 2020 and a 10% target to be achieved for the share of RES in the transport sector. This Directive, among other, establishes rules for joint green energy projects between Member States and third countries and access to the grid-system of electricity produced from renewable energy sources.
Oil Directive 2009/119/EC imposing an obligation on Member States to maintain minimum stocks of crude oil and/or petroleum products This Directive lays down rules aimed at ensuring a high level of security of oil supply in the Community through reliable and transparent mechanisms based on solidarity amongst Member States. It provides for the adoption of such laws, regulations or administrative provisions as may be appropriate in order to ensure that the total oil stocks maintained at all times within the Community for their benefit correspond, at the very least, to 90 days of average daily net imports or 61 days of average daily inland consumption, whichever of the two quantities is greater. Directive 98/70/EC relating to the quality of petrol and diesel fuels The EU introduced rules prohibiting leaded petrol and limiting the permitted sulphur content in diesel fuel with the view to improving air quality and reducing greenhouse gas emissions. This Directive sets technical specifications applicable to petrol, diesel fuels and biofuels used in vehicles, as well as to gas oils used in non-road mobile machinery. Apart from the prohibition of marketing leaded petrol, Member States must conduct assessment of national consumption of fuel, adopt laws and identify the authorized body (bodies) to introduce the fuel quality monitoring system. Directive 94/63/EC on the control of volatile organic compound (VOC) emissions resulting from the storage of petrol and its distribution from terminals to service stations, as amended by Regulation No. 1882/2003 156 This Directive provides for the registration of all terminals used for storage, loading and unloading of oil products, installation of technical means allowing reduction of VOC emissions from mobile containers with oil products, bringing all stationary tanks, rail, marine and motor vehicle tanks and loading installations in compliance with the established requirements. Directive 94/22/EC on the conditions for granting and using authorizations for the prospection, exploration and production of hydrocarbons This Directive establishes common rules to ensure the non-discriminatory access to and pursuit of activities relating to the prospection, exploration and production of hydrocarbons. These objective and transparent rules reinforce integration of the internal energy market, encourage greater competition and improve security of supply. The document provides for the implementation of measures to ensure: • equal access to all organizations possessing necessary resources for prospecting, exploring for and producing hydrocarbons; • granting authorizations on the basis of objective, published criteria; • communication of all necessary information to all organizations participating in the established procedures.
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The official translation has a lot of mistakes resulting from inaccurate translation
Glossary Business Climate Directive 2014/25/EU on procurement by entities operating in the water, energy, transport and postal services sectors and repealing Directive 2004/17/EC This Directive aims to ensure market openness, as well as fair procurements, in particular in the energy sector: extraction (production), transmission and distribution of gas, heat, electricity. Directive 2009/72/EC concerning common rules for the internal market in electricity and repealing Directive 2003/54/EC This Directive provides for the implementation of laws on the electricity market which defines electricity as an energy-related product to be purchased/sold/produced/transmitted/stored. These operations may be carried out by all licensed companies on equal competitive conditions. The state also ensures nondiscriminatory access to the existing infrastructure, creates favourable conditions for electricity producers to invest in new forms of energy (wind, solar, etc.). Directive 2009/73/EC concerning common rules for the internal market in natural gas and repealing Directive 2003/55/EC This Directive provides for the implementation of laws on the gas market which defines gas as an energyrelated product to be purchased/sold/produced/transmitted/stored. These operations may be carried out by all licensed companies on equal competitive conditions. The state also ensures that companies have non-discriminatory access to distribution networks, gas storage facilities and cross-border gas pipelines. Directive 2008/92/Eะก concerning a Community procedure to improve the transparency of gas and electricity prices charged to industrial end-users Pursuant to that Directive, open, generally accessible mechanisms of providing information on the prices of energy resources for customers must be introduced. A particular methodology of collection of respective information about gas and electricity prices is to be drawn up and the respective mechanism to that effect is to be introduced.