National Association of Regulatory Utility Commissioners Energy Regulatory

National Association of Regulatory Utility Commissioners Energy Regulatory Partnership Program with The National Commission for Energy State Regulation of Ukraine The fifth visit in the framework of partnership program 21 -25. 05. 2012 Kiev Reporter – Head of the department of legal support of consumer rights protection Bondar Elena 1

ü Law of Ukraine on “Natural Monopolies”, ü Order of the President of Ukraine “On National commission providing energy state regulation ”, ü NERC Order “On approval of rules of procedure of National commission providing energy state regulation” 2

Meetings like üOpen hearings üClosed hearings Meetings üStaff (weekly as a rule) üoperational üinteragency 3

The main forms of NERC activities. Meetings like open hearings General information: ü 1. As a rule they are conducted once a week. ü 2. Field meetings and non-field meetings. ü 3. The agenda includes sections : “Planned issues” and “Miscellaneous”. ü 4. The information about place, time and agenda ( except Miscellaneous) is published on official NERC website not later than 3 days before conducting the meeting. ü 5. Examination of issues is conducted jointly, Chairman and 6 Commission Members have equal rights when examining the issues and making decisions. ü 6. When making decisions The Chairman and Commission Members have one voice each. ü 7. The meetings are qualified in case of majority of the total composition of the Commission is present. ü 7. The representatives of natural monopolies entities, economic agents operating at adjacent markets, public (including mass media), consumer associations and other persons whose presence is needed for examination of issue participate at the meetings. ü 8. Before the start of the meeting it is necessary to register with secretary presenting the documents that confirm their authority in presenting the interests at the meeting. 4

* * * * - Issuance, reissuance, suspension and cancelling of license. Setting requirements to other types of economic activity but the licensed one by the licensee. Violation of license conditions, legislation. Application of sanctions to the licensees in case of non-compliance to license conditions, use of fines. Approval of draft regulatory acts and adoption of statutory and regulatory acts. Approval of licensee investment programs, Setting : Tariffs for electricity transmission and supply, Tariffs for transportation of natural, oil gas and coal mine gas (methane) via main and distribution networks, Tariffs for supply of natural gas and coal deposits gas (methane)according to regulated tariff, Tariffs for natural gas and coal deposits gas (methane) injection, storage and offtake, Tariffs for oil, petrochemicals, ammonia transportation by the main pipelines, Tariffs for thermal energy generated at CHP, TPP, nuclear power plants and cogeneration facilities and renewable energy sources facilities, Threshold level of prices for natural gas, Other issues having great public importance. 5

They are conducted in case of examination of the following issues, which: üAre connected with classified information, the order of access to which is regulated by special laws, confidential information access, Or other information the access to which is limited by physical or legal person. ü concerns electricity and natural gas markets functioning, ü requires immediate examination and should not be obligatory examined at the meetings in the form of open hearings. 6

ü Preparation in NERC structural subdivisions of - presentation - Draft decision - Information on issues brought for examination is provided to the department on organization of meetings not later than 2 days before being placed on official NERC site. ü Formation of agenda of 2 parts : ”Planned issues” and “Miscellaneous”. ü The first part is approved by the chairman, NERC members and structural subdivisions are informed, - The documents are presented not later than 5 days before the start of the meeting ( the issues of violation of license conditions – not later than 2 days, the issues to extraordinary meetings – not later than 1 day) ü The second part is formed on the basis of information (notes) of structural subdivision managers. The notes are presented not later than 15. 00 on the day before the meeting. The documents are presented to the chairman and NERC members not later than 15. 00 of the day before the meeting. ü Information about the place, date, time and agenda is published on official NERC website 7

ü The sequence of issues examination is according to agenda(the sequence can be changed issue examination can be postponed ( moved, prolonged) ü Participants registration (checking authority, in case of participants absence without good reason the chairman raises a question about examination without their participation) ü The secretary of the meeting provides information about participants presence to the chairman and commission members ü The Commission Chairman is in charge of the meeting( in case of his absence it will be acting chairman) ü The representative of structural subdivision should report about the essence of issue and proposal on taking decision ü The participants have a right to get acquainted with the documents, give explanations, ask questions to other participants ü Voting (formulate the content of the decision), Open fixed (by call) voting, each Commission Member has a right to present his own draft of decision) 8

ü ü Secretary is in charge of recording minutes of the meeting. Minutes are signed by: Commission Chairman, Secretary of the meeting. ü Minutes are endorsed by: - All the Commission members that participated at the meeting, - The leaders of structural subdivisions, ü The minutes are organized within 3 working days after the end of the meeting (in some cases it is 15 working days) ü Extract from the minutes is signed by: - The Chairman, - Commission member according to functional distribution of obligations - Meeting secretary. ü The extract from the minutes is provided in case the representatives of structural subdivisions apply for that or the stakeholders require that in written form. ü The minutes are kept in the department of organizing the meetings. 9

üDecisions are adopted by majority of votes of the total amount. The chairman and Commission members have one vote each. üThe one who does not agree with the decision taken can present his opinion separately in written form (applied to decision). ü The decision is organized within 3 working days after the meeting : - By statement or - order üDepends on Commission, protocol decisions can be taken on some issues. 10

ü Decisions as Statements: On investment program approval, - On approval of statutory and regulatory acts, - On setting tariffs, prices, - On imposing fines, - On issuance, reissuance, suspension, cancelling of licenses. Orders: - On warning about the need to get rid of violations of license conditions and legislation) ü Statements and orders are endorsed by the leaders of corresponding structural subdivisions, head of the department of organizing the meetings, head of legal department, members of Commission and signed by the chairman of commission (or acting chairman). ü Protocol decision is signed by the chairman and Commission members (according to functional responsibilities) and secretary of the meeting. ü Commission decision is in force from the day it is adopted, if a later date is not mentioned in decision itself. Decisions that should be registered are in force from the date of registration ü Commission decisions are registered according to the adopted procedure (published in “Official news of Ukraine”), and also published in official publication “Information NERC bulletin”. 11

Bondar Е. V. Legal Department 12