11:26 09.02.2021

Rada intends to increase requirements for natural monopolies in gas, electricity, water, heat supply markets

2 min read
Rada intends to increase requirements for natural monopolies in gas, electricity, water, heat supply markets

Draft Law No. 5020 amending the Public Procurement Law regarding the procurement of natural monopolies assigns operators of electricity distribution systems, gas distribution networks, centralized water supply and sewerage companies, and heat energy transportation to customers purchasing through the ProZorro system.

According to the text of the draft law, published on the Rada's website on Monday, the activities on the distribution of natural and oil gas by pipelines, the distribution of electricity by electricity networks, centralized water supply and drainage, as well as the transportation of heat energy are attributed to the criteria that must be met by a business entity operating in one or more certain areas, in order to be considered a procurement ordering party under the public procurement law.

At the same time, the wording of the list of types of activities in certain areas of management is being clarified. According to the bill, these include, in particular, the transportation, distribution, storage and supply of natural gas, its production and provision of LNG services, production, transportation and supply of electricity and heat, drinking water, centralized water supply and drainage.

The explanatory note to the draft law says that due to the non-use of the ProZorro system by the indicated economic entities and the non-disclosure of their costs, it is impossible to establish how reasonable are the costs of such natural monopolies taken into account in tariffs.

The authors of the bill refer to the experience of the EU countries, noting that they impose strict requirements on transparency and accountability on natural monopolies, and the tariffs of operators are regulated in order to protect consumers from unreasonable costs and stimulate proper investment in infrastructure.

As reported, on February 4, the head of the Rada's energy committee Andriy Gerus and about 60 other MPs registered in the parliament bill No. 5020 on amending the law on public procurement regarding purchases of natural monopolies. As Gerus said at the time in the Telegram-channel, this document obliges operators of electricity distribution systems and gas distribution networks, as well as heating companies and water utilities to carry out their purchases through the ProZorro system, believing that this will contribute to the transparency of the use of tariff funds and will avoid overpricing for such purchases.

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