Business news from Ukraine

UKRENERGO AND ENERGOMARKET TO LAUNCH SOFTWARE FOR RETAIL SEGMENT OF POWER MARKET BY LATE 2018

National Energy Company Ukrenergo and state-owned enterprise (SOE) Energomarket in December 2018 will launch software required for the operation of the retail segment of the new power market, Deputy Prime Minister of Ukraine Volodymyr Kistion has said. He said that the terms are outlined in the plan of the implementation of the law on the electricity market verified by the heads of the Energy and Coal Industry Ministry, the National Commission for the State Regulation of Energy, Housing and Utilities Services (NCER) and the parliamentary committee for fuel and energy complex.
“The first stage of the reform related to the retail market segment will start already in December 2018. Two months later, Ukrenergo and Energomarket will launch the required software, and NCER will approve the last part of the acts needed to effectively launch a new market,” Kistion wrote on his Facebook page.
The deputy prime minister added that the Energy and Coal Industry Ministry, in turn, is obliged to forward the bills on the rules of ensuring the supply of electricity to protected consumers and the rules of holding a tender for the construction of generating capacities, the introduction of energy efficient measures to the government in the shortest possible time.

, , , ,

UKRENERGO HEAD EXPECTS CORPORATIZATION TO BE COMPLETED IN TWO MONTHS

National Energy Company Ukrenergo is heading to the final stage of corporatization and the end of this process is expected approximately in the middle of November, Ukrenergo CEO Vsevolod Kovalchuk has said.
“The process was delayed because the reorganization commission had no evaluation. Now it is completed, a positive review from the State Property Fund has been received,” he told Interfax-Ukraine on the sidelines of the YES Conference organized by the Victor Pinchuk Foundation in Kyiv.
Kovalchuk said that the commission should approve the audit of the balance to be transferred, for which the necessary materials were sent to the ministries. According to him, the next week or in two weeks the answers will be received, after which the process will reach the formal final stage: the charter will be approved and registered. The draft charter has long been developed. After that, Ukrenergo will be transferred to the State Property Fund with the subsequent return to the ownership of the Energy and Coal Industry Ministry.
“This process will be completed in full before the middle of November,” the head of the company said.
He added that synchronously to the process the supervisory board is being approved. “The selection (of four independent members of the supervisory board] was completed two and a half or three months ago, but there is no decision on the appointment yet. I hope that this issue will be resolved in a week or two, and this will open the way for further transformation of the company, and the corporate governance reform will be completed,” Kovalchuk said.
He found it difficult to name the size of the charter capital of Ukrenergo following the results of corporatization, since it is necessary to approve the audit of the balance of payments to take into account the remarks, if any, on including or excluding certain assets or ownership rights into or from the charter capital.

STATE-OWNED UKRENERGO TO SIGN AGREEMENT WITH MOLDELECTRICA ON SIMULTANEOUS WORK

Ukrenergo plans at the end of 2018 to sign an operational agreement on simultaneous operation in the Ukraine-Moldova control block with Moldelectrica, the press service of the Ukrainian company has reported. “The operational agreement is a contractual basis for the parallel operation of the transmission system operators, which is being worked out in the framework of the action plan for the synchronization of the energy systems of Ukraine and Moldova with ENTSO-E … The final signing of the operation agreement is scheduled for the end of 2018,” the report says.
On September 14 Ukrenergo and Moldelectrica signed three new provisions from the future agreement, and in general 17 provisions are already ready.
“The operating agreement significantly simplifies our contractual base and brings it into full compliance with the European standards. After its final signing, we will be able to cooperate with Moldelectrica according to ENTSO-E rules. To date, the major part of the plan of measures for the development of this important document has already been completed,” Yuriy Kudrenko, the head of the department for ensuring the parallel operation of Ukrenergo’s power systems, said.

, ,

STATE-RUN UKRENERGO HAS 149 MLN EUR JOINT PROJECT WITH EBRD TO MODERNIZE SUBSTATIONS

Ukrenergo is preparing a new joint project with the European Bank for Reconstruction and Development (EBRD) “Modernization of Transmission Networks” with an approximate cost of EUR 149 million, the company’s press service has reported. “The goal of the project is the replacement of power equipment, the reconstruction of substations with the introduction of an automated control system for technological processes,” Ukrenergo said. As part of the preparation of the project, representatives of consultancy companies selected by the EBRD, namely Tetra Tech (the United States) and AF-Mercados EMI (Spain) visited ten substations of Ukrenergo (750 kV Zakhidnoukrainska, 400 kV Mukachevo, 330 kV Novovolynsk, 330 kV Hrabiv, 750 kV Donbaska, 330 kV Myrhorod, 330 kV Kupiansk, 330 kV Mykolaivska, 330 kV Trykhaty, and 330 kV Lisova).
The consultants should prepare feasibility studies for the reconstruction of the listed substations, and the project is planned to be implemented at the expense of EBRD loan funds until 2021.
Modernization of the substations will increase the efficiency and reliability of electricity transmission, will allow to manage the equipment of the substations from the regional centers. Also, its implementation will be the basis for the introduction of a smart grid technology in the framework of the “Second Electricity Transmission Project” implemented by Ukrenergo jointly with the International Bank for Reconstruction and Development (IBRD).

, , ,

STATE-RUN UKRENERGO ATTRACTS KPMG AND TALENT ADVISORS TO DEVELOP COMPLIANCE POLICY

Ukrenergo on July 24 signed an agreement with KPMG Ukraine on the development of a compliance policy for the company, the press service of Ukrenergo has reported. “When developing the documents, emphasis will be made on specific compliance standards, concerning the work of transmission system operators, for which KPMG Ukraine will attract one of the German transmission system operators as a consultant,” the press service said.
In addition, on July 2 Ukrenergo signed a contract with the recruiting agency Talent Advisors LLC to find a compliance officer, who is also expected to be appointed as an agent for the implementation of an anti-corruption program in the company.
As reported, compliance is part of the management/control system in the organization, related to the risks of non-compliance with the requirements of legislation, regulatory documents, rules and standards of supervisory bodies, industry associations and self-regulatory organizations, codes of conduct, etc.

, , ,

STATE-OWNED UKRENERGO STARTS MODERNIZATION OF KRYVYI RIH SUBSTATION

State-owned enterprise Ukrenergo has launched the modernization of the Kryvyi Rih 330 kV substation, the press service of the company has reported. “The works are fulfilled under the contract on technical re-equipment of the Kryvyi Rih 330 kV and Dnipro-Donbas 330 kV substations signed between Ukrenergo, international consortium GE Grid GmbH (Germany) and ChornomoretsEnergoSpetsBudMontazh LLC (Ukraine),” the company said. The project receives financing from a loan granted by the German government under Ukrainian sovereign guarantees.
“All high-voltage equipment, protective relays and automatic equipment will be replaced and an automatic process control system will be introduced during the modernization of the 330 kV switchyard at the substation,” Ukrenergo said. As reported, Ukrenergo launched a new 125 MVA auto transformer AT-4 at the Vinnytsia 750 kV substation and a new 125 MVA auto transformer AT-1 at the Poltava 330 kV substation.
Ukrenergo operates trunk and interstate power grids, as well as performs the centralized dispatching of the united energy system in the country. The company is a state-owned enterprise, it is subordinate to the Ministry of Energy and Coal Industry.

,