On Thursday, December 8, the Law on National Electricity Regulatory Commission came into force.
The law was published in Uriadovyi Kurier on December 7.
The Verkhovna Rada adopted this law on September 22. The President signed it on November 23.
According to the law, NERC members are approved by the President based on the decision of the Nomination Commission.
The Nomination Commission consists of five members, two of which should be determined by the President, other two – by the Verkhovna Rada (one from FEC Committee and one from HPU Committee) and one – by the Cabinet of Ministers (upon the recommendation of the Minister of Energy).
As the people’s deputy Alexei Riabchyi wrote in ET column, with such formula the majority in the Nomination Commission will be presidential.
The regulator’s composition will include seven members, including the chairperson. They will be appointed for 6 years with no right to occupy the position for more than 2 terms.
NERC Chairperson is elected by regulator’s members by virtue of secret voting. He is re-elected each two years after the day of approval of the first composition of the National Commission.
The final provisions stipulated that the President applies the rotation, according to which the regulator’s members are subject to dismissal in three stages, to the acting chairperson and members of the NERC.
First three members should be replaced not later than 6 months after the law comes into force, other two – not later than 12 months, others – not later than 18 months.
“The regulator’s funding is made through contributions, made to the public budget’s special fund for regulation, paid by business entities, conducting activities in the spheres of energy and utility services”, according to the document.
For more details about NERC law, please read the column of ET’s energy expert Andrei Zinchenko.
NERC carries out public regulation of activities of natural monopoly entities in the electrical energy, heating, oil & gas complex, centralized water and water discharge, processing and disposal of urban waste as well as ensures adopting price and tariff policy in these spheres.
