Accelerating energy recovery: Government simplifies transfer of key equipment to operators

The Cabinet of Ministers of Ukraine has approved changes that will allow electricity distribution system operators (DSOs) to lease state-owned energy equipment without holding an auction for the duration of martial law and for six months after its termination or cancellation.

This refers to equipment that is on the balance sheet of state-owned enterprises and economic companies with a state share of more than 50%, but is not used for its intended purpose and can be used for the urgent needs of the energy system.

In particular, these include:

• power transformers;
• high-voltage switches;
• disconnectors;
• inlets;
• power cables.

"Due to systematic shelling of energy infrastructure in certain regions, the stable supply of electricity has been disrupted. At the same time, some public sector enterprises have relocated their capacities and are not using certain energy infrastructure facilities. The adopted changes will make it possible to transfer such equipment to distribution system operators faster — to restore and ensure further energy supply to consumers," said Oleksii Sobolev, Minister of Economy, Environment and Agriculture of Ukraine.

The amendments provide for the following:

• for state property: transfer to DSO for lease without auction; monthly rent — UAH 1 per object; no independent assessment is conducted.
• for property of business entities with a state share of more than 50%: transfer to lease (rent) to DSO without auction; annual fee — UAH 1 per year.