Electricity
1. Launch of the mechanisms of the U.S.–Ukraine Reconstruction Investment Fund | On 5 November, the Cabinet of Ministers approved a resolution that launches the institutional and procedural mechanism for implementing the Agreement with the United States on the establishment of the U.S.–Ukraine Reconstruction Investment Fund.
Key changes:
- three authorized representatives from the Ministry of Economy, Environment and Agriculture were delegated to establish the Fund in the form of a limited partnership and to participate in its management
- the U.S. Partner was designated as the U.S. International Development Finance Corporation (DFC)
- the obligations of project participants were determined, including to notify the Agency of capital raising, to provide investment information, and to conduct good-faith negotiations regarding the Partnership’s participation in financing
- guarantees of the confidentiality of information and the absence of commercial preferences for the U.S. partner were determined
- mechanisms of interaction between the Ministry of Economy, the Agency, the Ministry of Defence, and the National Bank of Ukraine were defined with respect to accounting for new military assistance as a contribution to the Partnership, as well as currency operations and transfers to its accounts.
Expected impact:
The resolution is expected to ensure the practical launch of the Fund, determine transparent rules for investor participation in natural resources and infrastructure projects, and strengthen coordination between U.S. military assistance and long-term investment financing for reconstruction.
2. Improvement of special auctions for contracts on the provision of ancillary services (AS) | On 18 November, the NEURC introduced an amendment to the Market Rules regarding the operation of ancillary service providers in special auctions.
Key changes:
- the possibility was provided to consolidate several AS contracts concluded for the same service provision period as a result of one special auction into a single consolidated contract
- such consolidation is carried out through an additional agreement, after which the other contracts are automatically terminated
- financial security must correspond to the aggregate requirements under all AS contracts being consolidated
- the technical characteristics of a potential AS provision unit must ensure the simultaneous fulfillment of all volumes sold at the auction
Expected impact:
The decision is intended to improve the administration of AS auctions, simplify the fulfillment of obligations for participants, and may accelerate the commissioning of new balancing capacities in the power system.
3. Update of simplified connection of generating facilities during martial law | On 2 December, the National Energy and Utilities Regulatory Commission (NEURC) adopted Resolution No. 1949, which introduced amendments to Resolution No. 352 concerning the temporary connection of generating facilities, derogations from technical requirements, commercial metering, and the sequencing of capacity commissioning into the grid.
Key changes
- an application for the temporary connection of generating facilities under the simplified procedure may be submitted until 1 May 2026; the connection agreement and technical specifications are valid no later than 1 October 2026, and the connection must be completed by that date
- for generating facilities using solar and/or wind energy, an obligation is established to install an energy storage system with a capacity not less than the contracted capacity, ensuring at least 4 hours of power output
- the technical specifications may provide for the sequencing of capacity commissioning, enabling the phased commissioning of generation with the minimum necessary technical measures
- temporary derogations from certain requirements for electricity commercial metering are permitted until 1 October 2026, with subsequent alignment with the applicable requirements after the termination of martial law
- the procedure for granting derogations from certain requirements of Chapter 3 of Section I of the Transmission System Code has been clarified, with the definition of the minimum technical requirements necessary for safe parallel operation with the power system
Expected impact:
The changes are aimed at creating conditions for more rapid connection of generating facilities to electricity networks during the period of martial law, and may increase the predictability of connection procedures for the owners of such facilities.
Licencing
4. Update of licencing conditions in the energy and utilities sectors | On 11 November, the NEURC adopted the resolution "On Approval of Amendments to Certain NEURC Resolutions", which updated the Licencing Procedure and licencing conditions for key types of activities in the electricity, gas, heat, water, energy storage, and aggregation markets.
Key changes:
- the submission of documents was simplified (the requirement to submit applications and annexes "in two copies" was abolished, and the designation of annexes was technically clarified)
- the obligations of licensees regarding interaction with the NEURC were strengthened – a number of licencing conditions now expressly require licensees to comply with decisions and provide information to the regulator "in full"
- unified approaches to sanctions were implemented in most licencing conditions: licensees are required, within five business days, to notify the NEURC and counterparties/consumers of the imposition/change/lifting of sanctions in respect of themselves or their ultimate beneficial owner and to ensure compliance with restrictive measures
- the Licencing Procedure further detailed issues of succession (the possibility of temporary operation on the basis of an "old" license in cases of reorganisation/concessions) and provides for indefinite suspension of a licence in the event that control is established by residents of aggressor states
Expected impact:
The amendments may simplify licencing, unify sanctions-related approaches across different market segments, and reduce regulatory risks during corporate changes and the implementation of infrastructure projects.
5. Adoption of special licencing rules for electricity and heat producers during wartime | On 25 November, the NEURC adopted a resolution on simplified licencing of electricity and/or heat producers during martial law.
Key changes:
- heat producers operating cogeneration units may temporarily operate without a licence if they sell heat to a heat supply organisation; they are only required to notify the state authorities of the commencement of operations within three days
- producers applying for a licence to carry out economic activity in heat production at cogeneration units may refrain from submitting information on the locations where heat production activities are carried out
- documents confirming the readiness of facilities for operation were defined (gas piston, gas turbine, cogeneration, block-modular boiler plants with a capacity of 1 MW or more): a copy of the protocol of comprehensive testing or a document in accordance with Cabinet of Ministers Resolution No. 1320.
Expected impact:
The resolution temporarily simplifies market entry conditions and the launch of new generating capacities, reduces administrative burden, and accelerates the commissioning of local generation facilities, which is critical during martial law.
Subsoil
6. Defining the rules for comprehensive inspections of production sharing agreement compliance | On 3 December, the Cabinet of Ministers of Ukraine adopted Resolution No. 1589 approving the Procedure for conducting comprehensive inspections of compliance with the terms of production sharing agreements (PSAs), which regulates the inspection procedure and the rules for interaction between the state and investors.
Key changes:
- the frequency of comprehensive inspections is defined: they are conducted at least once every five years based on a decision of the Cabinet of Ministers of Ukraine
- inspections are carried out by a special commission composed of representatives of executive authorities (the Ministry of Energy, the Ministry of Economy, the State Service of Geology and Subsoil, the State Tax Service, the State Audit Service, the State Environmental Inspectorate, etc.)
- the investor is notified in writing of the comprehensive inspection within the timeframes specified in the PSA, and if such timeframes are not defined – no later than 90 days before the start of the inspection
- the total duration of an inspection is set at up to 20 calendar days, with the possibility of a one-time extension for an additional 10 calendar days, unless otherwise provided by the PSA
- investor safeguards are established, including: a prohibition on repeated inspections of periods and issues that have already been reviewed; a prohibition on examining issues not included in the approved inspection scope (except for matters regulated by the Tax Code of Ukraine); and an obligation to minimize interference with oil and gas operations
- the investor has the right to provide explanations or address the comments identified during the inspection within the timeframe specified in the PSA, and if such timeframe is not specified – within up to 60 calendar days
- confidential information must be protected, and both parties may conduct audio, photo, and video recording of the inspection process
Expected impact:
The resolution may establish a more predictable and procedurally safeguarded framework for monitoring compliance with PSAs. For investors, this may result in reduced regulatory uncertainty, clearly defined timeframes, and limitations on the scope of inspections, while for the state it provides a unified instrument for assessing compliance with financial, technical, environmental, and social obligations under production sharing agreements.
Oil / Gas
7. Update of the simplified connection of generating units and modular boiler houses | On 16 December, the NEURC adopted Resolution No. 2110 amending Resolution No. 355, which improved the procedure for connection to gas distribution systems under martial law conditions.
Key changes:
- the procedure for connection of gas turbine, gas piston and cogeneration units, modular boiler houses, and gas generators to gas distribution systems has been clarified
- in the event of an emergency situation and based on a decision of the Commission on Technogenic and Environmental Safety and Emergency Situations, the timeframe for providing the connection agreement and technical conditions is reduced to 3 calendar days
- the procedure for completing land and permitting documentation in the course of connection to gas distribution systems has been regulated: where such documentation cannot be completed during the period of martial law, it may be completed within 24 months after the completion of the connection, but no later than 6 months after the termination or cancellation of martial law; gas distribution system operators are prohibited from requiring such documents as a condition for connection
- the conditions for connection of critical infrastructure facilities and enterprises performing mobilization tasks have been clarified, subject to the availability of confirmation from the military administration
Expected impact:
The changes may facilitate faster connection of distributed generation and heat supply facilities to gas distribution networks during the period of martial law and may reduce administrative barriers to the implementation of such projects.
Tariffs
8. Determination of the electricity transmission tariff of NEC "Ukrenergo" for 2026 | On 5 December, the NEURC adopted Resolution No. 2009 "On determination of the tariff for electricity transmission services of NEC "Ukrenergo" for 2026", which determined the tariffs for 2026 with phased application throughout the year.
- a phased tariff has been determined for system users (excluding enterprises of "green" electrometallurgy), which includes a component for the fulfilment of public service obligations to support renewable energy sources:
- 68 UAH/MWh from 1 January 2026 to 31 March 2026 (increase of 4%), including 352.00 UAH/MWh for public service obligations
- 91 UAH/MWh from 1 April 2026 to 31 December 2026, including 360.34 UAH/MWh for public service obligations
- a separate tariff has been determined for enterprises of "green" electrometallurgy:
- 93 UAH/MWh from 1 January 2026 to 31 March 2026 (increase of 4%)
- 49 UAH/MWh from 1 April 2026 to 31 December 2026
9. Determination of the tariff for dispatching (operational and technological) control for 2026 | On 5 December, the NEURC adopted Resolution No. 2010 "On determination of the tariff for dispatching (operational and technological) control services of NPC Ukrenergo for 2026", which set the tariff for dispatching (operational and technological) control services for 2026 at UAH 110.03/MWh, representing an increase of 11.18%.
10. Determination of electricity distribution tariffs for 2026 | On 5 December, the NEURC adopted resolutions determining tariffs for electricity distribution services for 2026 under two approaches: the application of incentive-based regulation (RAB) for the majority of distribution system operators, and the "Cost Plus" methodology for certain DSOs. In both decisions, the tariff calculations take into account the updated transmission tariffs of NPC Ukrenergo (applied in stages from 1 January 2026 and from 1 April 2026) and the dispatching control tariff for 2026, as well as the phased application of distribution tariffs in connection with the two-stage transmission tariff.
11. Determination of "green" tariffs for small producers and private households from 2026 | On 30 December, the NEURC adopted a series of resolutions determining, as of 1 January 2026, "green" tariffs for electricity generated by business entities (including bonuses for the use of Ukrainian-made equipment), by consumer-owned generating installations, including energy cooperatives with an installed capacity of up to 150 kW, as well as by generating installations of private households. The tariffs were revised in accordance with legislative requirements, taking into account the updated UAH/EUR exchange rate.
For further information, please contact Asters' Partner Yaroslav Petrov or Senior Associate Tetiana Piskun.
