Obtaining electricity license for business in Ukraine

Two years ago, in 2017, the electricity market in Ukraine was reformed. This has opened up an opportunity for many people to start their own business in the promising and profitable energy sector.

Our company was one of the first to understand the complex procedure of registration by the participant of the electricity market of Ukraine and obtaining the necessary licenses. And today we will talk about what needs to be done to start a business in the energy sector.

Related article: How to start Your business in Ukraine?

How to start electricity supply activities?

To start working as an electricity supplier, You must obtain the appropriate license. You must not supply or sell electricity without a license! This will entail fines of UAH 17,000.

Then you will have to go through a long procedure of registration by an electricity market participant. It consists of the following stages:

• Obtainment of an EIC code. It is your company's identifier among other players in the electricity market. It will also be necessary for signing some contracts in the electricity market.
• Signing  of the Electricity Transmission Service Agreement with the Transmission System Operator (TSO). This and any other contract of an electricity supplier company must be drawn up with great care, because You do not want to delay the registration process as the electricity market participant.
• Signing of the Electricity Imbalance Settlement Agreement. Without this contract, You will not be allowed to operate on the electricity market. It is concluded by and between the Supplier and the Transmission System Operator.

Under this contract, the energy supplier will have to notify and comply with its electricity supply schedules according to the amount of electricity purchased. 

We will help you to clearly understand all the requirements for signing a contract and how to get it right.

• Submission of application for registration by a market participant with relevant applications. 

State Enterprise "Ukrenergo" considers documents within 3 working days.

An electronic copy of the application for registration is attached to the package of documents. After 3 days the decision on registration by the market participant or on rejection of the application will be made.

Related article: Receiving the temporary residence permit (TRP) by LLC registration: procedure and benefits

What else would a company need to start a business in the electricity sector?

• VAT payer status;
• Bank account with special usage mode;
• EDS keys for employees working on the online market platform;
• Financial guarantee to fulfill obligations under unbalance settlement agreements.

Of course, do not forget that if you open a firm that will deal with electricity supply and intend to act as its director, you will need to obtain a work permit in Ukraine.

We are ready to help you in the process of establishing a business in Ukraine at any stage or accompany the whole procedure from A to Z.