Government strengthens oversight of compliance by business entities with legislation in electricity and heat supply sectors

The Cabinet of Ministers of Ukraine has adopted a decision that strengthens state oversight in the spheres of electricity and heat supply under martial law. Specifically, it has amended Resolution No. 303 of the Cabinet of Ministers of Ukraine dated 13 March 2022, thereby enabling the State Energy Supervision Inspectorate of Ukraine to fully carry out measures of state energy supervision (control).

Under the decision, the State Energy Supervision Inspectorate will be able to monitor compliance with legislative requirements in the fields of electricity and heat supply for all business entities operating in these sectors, including electricity producers, the transmission system operator and distribution system operators, as well as heat supply enterprises, in accordance with the procedure set out in the Law of Ukraine “On the Basic Principles of State Supervision (Control) in the Sphere of Economic Activity”, throughout the entire period of martial law.

The need for such changes arises from the increasing number of technological disruptions and accidents at energy infrastructure facilities.

In order to prevent breaches of the operating regime of Ukraine’s unified energy system or its individual parts due to power and electricity shortages, frequency reductions, violations of permissible flow regimes, and overloading of network elements, the State Energy Supervision Inspectorate will be able to conduct inspections of electricity and heat supply entities, in particular regarding the timely identification of potential organisational and technical preconditions for disruptions in the operation of electricity and heat supply facilities, and the development of organisational and technical measures to prevent emergency situations in the operation of the relevant equipment in the future.

The implementation by the State Energy Supervision Inspectorate of the corresponding state supervision (control) will enhance the accountability of business entities for compliance with legislation, regulatory acts, norms, and rules concerning the technical condition of electricity and heat supply facilities, the organisation of their operation, and the assurance of reliable supply of electrical and thermal energy.