Obtaining a license to sell electricity

The license for the sale of electricity in Ukraine is a document that confirms the right of a legal entity to carry out business activities related to the sale of electricity.

Obtaining a license allows a legal entity to legally carry out this activity and protects its rights and interests.

The process of obtaining a license to sell electricity is regulated The Law of Ukraine “On the National Commission, which carries out state regulation in the spheres of energy and communal services”, The Law of Ukraine “On Licensing Types of Economic Activity”, the Law of Ukraine “On the Electric Energy Market”, the Resolution of the National Commission for State Regulation in the Energy and Utilities Sectors dated 03.03.2020, Resolution of the National Commission for State Regulation in the Energy and Utilities Sectors dated 12/27/2017

Let’s consider this question in a little more detail.

First, only legal entities registered in Ukraine can obtain such a license.

To obtain a license to sell electricity in Ukraine in 2024, the following requirements must be met:

• The enterprise must have a license for the right to conduct economic activity in the production of electricity or a license for the right to conduct economic activity in the transmission of electricity.
• The enterprise must have the technical capabilities to sell electricity, namely:
  • own or leased electrical networks;
  • devices for measuring and accounting for electricity;
  • software for managing the sale of electricity.
• The enterprise must meet the requirements for financial reliability, in particular, have a charter capital of at least 5 million hryvnias.

To obtain a license for the sale of electricity, the following documents must be submitted to the National Commission for State Regulation of Energy and Utilities (NKREKP):

• Application for obtaining a license;
• Copies of the founding documents of the enterprise;
• Copies of the enterprise registration certificate;
• Copies of licenses for the right to carry out economic activities in the production of electricity or transmission of electricity;
• A certificate on the availability of technical capabilities for the sale of electricity;
• Certificate of compliance with financial reliability requirements.

The NCRECP considers an application for obtaining a license within 10 working days. In the case of a positive decision, the NCRECP issues a license for the sale of electricity.

A license to sell electricity is issued for an unlimited period. But other options are possible depending on the results of your application review: refusal to issue a license or leaving an application for a license without consideration

What rights does a legal entity with a license to sell electricity receive?

• The right to carry out business activities related to the sale of electricity on the territory of Ukraine.
• The right to conclude electricity purchase and sale contracts with any consumers, including transmission system operators (TSOs), distribution system operators (DSOs) and universal service providers (USPs).
• The right to access the electrical grids of the OSR and OSP for the transmission of electricity to consumers.
• The right to receive compensation from the state for underloading electricity in the event of its sale at prices lower than economically justified.

Note! At the same time, it is important to remember that the license for the sale of electricity also imposes certain obligations on the legal entity that received it, in particular compliance with the requirements of the legislation of Ukraine in the field of electricity, providing information to the National Energy Regulatory Commission of Ukraine about its activities and paying taxes and other mandatory payments.

Grounds are provided when the license for the sale of electricity can be canceled by the NCRECP. Such grounds include:

• Changes in the legislation of Ukraine, make it impossible to carry out business activities related to the sale of electricity.
• Failure of a legal entity that has received a license to comply with the requirements of Ukrainian legislation in the field of electricity.
• Incomplete or inaccurate information submitted by a legal entity when obtaining a license.

The assistance of the legal company “Prikhodko and Partners” in obtaining a license for the sale of electricity

Our law firm is ready to provide professional assistance in all stages of obtaining a license to sell electricity. We will help you prepare all the necessary documents, submit the application correctly, and accompany you to the moment of successfully obtaining a license.

Our team works responsibly and quickly. We guarantee quality services.