The regulator has approved the Compliance Program of Gas TSO of Ukraine

December 24, 2020, Kyiv – The National Energy and Utilities Regulatory Commission (the Regulator) has approved the Compliance Program of Gas TSO of Ukraine. The document contains a number of requirements and rules, the implementation of which ensures the principles of independence, non-discrimination and transparency of the GTSOU. The adoption of this document is another step towards harmonization of Ukrainian and European legislation.

The Compliance Program stipulates responsibilities and measures for the compliance of Gas TSO with the following requirements: unbundling and independence of the gas transmission system from the natural gas production, distribution, natural gas supply, wholesale traders’ activities in conformity with legislation; non-discrimination of natural gas market participants; application of objective and transparent principles of task execution. It also contains the requirements for monitoring, control and regular reporting on the implementation of this GTSOU Program.

The implementation of the Program will be monitored by a Comptroller. It can be a natural or legal person with the necessary qualifications and professional experience, fully independent and unbiased in its activities. The Controller shall report on the observance of the Program by Gas TSO to NEURC and to the EU Energy Community Secretariat.

“We welcome the Regulator’s approval of the Compliance Program. Gas TSO, by introducing the Program, adhered to all the requirements of Ukrainian legislation and was guided by the principles established in the EU directives,” commented Sergiy Makogon, CEO of GTSOU. “The implementation of this Program will allow to strengthen the independence of GTSOU and guarantee its transparent and fair operation. The Ukrainian gas market needs a real, rather than fictitious segregation of functions of natural monopolies and other parties. Currently there are still complaints about violations by certain gas suppliers and affiliated Gas DSO. Therefore, the next step should be to analyze the state of unbundling of Gas DSO. We encourage the regulator to initiate it in the nearest future and to ensure the compliance with the principles of transparency in all segments of the energy market”.

It should be pointed out that on January 1, 2020, the gas market of Ukraine went through a notable reform when the Gas TSO was separated from the Naftogaz group as a result of unbundling. In doing so, Ukraine has fulfilled the requirements of the EU’s Third Energy Package to separate gas transportation activities from production and supply.