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Changes to the licensing conditions for carrying out economic activities in energy sector

On 11 February 2021 the Resolution of the National Commission for State Regulation in the Spheres of Energy and Utilities No. 218 "On Approval of Amendments to Certain Resolutions of the National Commission for State Regulation in the Spheres of Energy and Utilities" ("Resolution") came into force.

The Resolution, among other things, amends the Procedure for licensing types of economic activities, state regulation of which is carried out by the National Commission for State Energy and Public Utilities Regulation ("NEURC"), approved by the resolution of the NEURC dated 3 March 2020 No. 548.

In the event of the transfer of an integral property complex, in other words an enterprise, to another company that intends to obtain an appropriate license, such a company shall attach to the application for obtaining a license (notification of changes in the data specified in the application and documents attached to the application for obtaining a license) a letter of guarantee of fulfilment obligations to eliminate violations of license conditions and not fulfilled by the previous licensee, in terms of meeting technological requirements and adjusting expenses and income.

According to the Licensing conditions for the implementation of economic activities for the production of electrical energy approved by the Resolution of NEURC dated 27 December 2017 No. 1467, the licensee must not transfer the license obtained to carry out activities for the production of electrical energy, or any rights and obligations of the licensee in accordance with such a license to third parties.

The Resolution states that the licensee that intends to transfer the enterprise to another company, in the cases stipulated by the relevant licensing conditions, must, no later than 2 months before the transfer of the enterprise, apply to NEURC with a written application for verification of its compliance with the license conditions and legislation.

The licensee that intends to cancel the license, in the cases stipulated by the relevant licensing conditions, must, no later than 2 months before submitting an application for the cancellation of the license, apply to NEURC with a written application for verification of its compliance with licensing conditions and legislation in the energy and utilities sectors.

Consequently, in case of transfer of an enterprise operating under a license issued by NEURC, the licensee must apply to NEURC in writing to verify compliance with the license conditions. Only after that, the enterprise can be transferred to another company, which will receive an appropriate license with appropriate confirmation that the previous owner did not violate the license conditions.

For further information, please contact Asters' partner Yaroslav Petrov and associate Olena Sichkovska.

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