“Samopomich” insists on a full rotation of National Commission for State Regulation in Energy and Utilities’ members

“Samopomich” Union faction insists on immediate adoption of the draft law on the National Commission for State Regulation in Energy and Utilities in the second reading in the version with the requirement of full rotation of the Commission’s members.

№2966 bill has been pending in the Parliament for over a year. During this time it has been sent back to the additional first reading, then the additional second reading, and now, finally, the Energy Committee supported the requirement of the “Samopomich” faction on the full rotation (dismissal) of all members of the Commission.

It is exactly this composition of the Commission that is responsible for all shameful and scandalous decisions:

on trying to purchase transformers three times more expensive – up to 3 billion hryvnias,

on introduction of non-objective approaches to funding regional power distribution companies – up to 35 billion hryvnias,

on introduction of the well-known “Rotterdam formula” for the price of coal in the electricity costs – 10 billion hryvnias.

Each and every consumer of electricity is charged for these huge amounts.

Licensees are constantly complaining about the corruption approaches in setting the tariffs for heat and water supply. Especially, this concerns private producers with alternative fuel.

“Samopomich” MP Lev Pidlisetskyi has been defending the idea of the full rotation of the Commission’s members from the very first days. He introduced his amendment concerning the full rotation to the second reading, but the lawmakers did not have the courage to support it; only when the amendment was re-filed together with his colleague Aliona Babak, and Olha Belkova it was supported by the Committee by a margin of one vote.

The National Commission for State Regulation in Energy and Utilities regulates the energy markets of the overall volume of more than 300 billion. At present, this structure is under a complete control of the President of Ukraine who is the one who appoints and dismisses members. The bill provides for introduction of institutional independence and professionalism in the work.

European Community and international financial institutions also require adoption of the bill and connect it with provision of a macro-financial assistance in the amount of 600 million euros.

Establishment of an independent and professional regulatory body is a step towards economically justified tariffs for public utilities and towards ensuring the balance of interests of all participants in the energy market and public services, rather than creation of preferences for some of them.

Lev Pidlisetskyj
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