THE RESOLUTION OF THE NATIONAL COMMISSION PERFORMING STATE REGULATION IN THE FIELD OF POWER AND UTILITIES OF UKRAINE

of December 27, 2017 No. 1437

About approval of Changes in some resolutions of NKREKP concerning implementation of daily balancing in the natural gas market and procedures of development, representation and approval of the Development plan for gas-transport system the next 10 years

According to provisions of article 4 of the Law of Ukraine "About the natural gas market" and article 17 of the Law of Ukraine "About the National commission performing state regulation in the field of power and utilities" the National commission performing state regulation in spheres of power and utilities decides:

1. Approve Changes in the Code of gas-transport system approved by the resolution of the National commission performing state regulation in spheres of power and utilities, of September 30, 2015 No. 2493, registered in the Ministry of Justice of Ukraine on November 6, 2015 at No. 1378/27823, which are applied.

2. Approve Changes in the Code of gas-distribution systems approved by the resolution of the National commission performing state regulation in spheres of power and utilities, of September 30, 2015 No. 2494, registered in the Ministry of Justice of Ukraine on November 6, 2015 at No. 1379/27824, which are applied.

3. Approve Changes in the Rules of supply of gas approved by the resolution of the National commission performing state regulation in spheres of power and utilities, of September 30, 2015 No. 2496, registered in the Ministry of Justice of Ukraine on November 6, 2015 at No. 1382/27827, which are applied.

4. Approve Changes in the Standard agreement of transportation of natural gas approved by the resolution of the National commission performing state regulation in spheres of power and utilities, of September 30, 2015 No. 2497, registered in the Ministry of Justice of Ukraine on November 6, 2015 at No. 1383/27828, which are applied.

5. Bring in the Code of gas storages approved by the resolution of the National commission performing state regulation in spheres of power and utilities, of September 30, 2015 No. 2495, registered in the Ministry of Justice of Ukraine on November 6, 2015 at No. 1380/27825, the following changes:

Item 4 of Chapter 4 of the Section I to exclude 1);

Item 4 of Chapter 7 of the Section III to exclude 2).

6. Bring in the Standard agreement of distribution of natural gas approved by the resolution of the National commission performing state regulation in spheres of power and utilities, of September 30, 2015 No. 2498, registered in the Ministry of Justice of Ukraine on November 6, 2015 at No. 1384/27829, such changes:

Subitem 1.4 of the Section I after the paragraph of the eleventh to add 1) with the new paragraph the twelfth the following content:

"The register of consumers of the supplier is list of consumers who in the procedure established by the Code of gas-transport system are fixed in information platform of the operator of gas-transport system with certain supplier in settlement period;".

With respect thereto the twelfth - the fourteenth to consider paragraphs respectively paragraphs the thirteenth - the fifteenth;

2) in the Section III:

the paragraph one of Item 3.1 to state in the following edition:

"3.1. The consumer has the right to perform selection/consumption of natural gas from gas-distribution system on condition of inclusion it in the Register of consumers of any supplier during the actual selection / consumption of natural gas in the procedure established by the Code of gas-transport system that is confirmed by the operator of gas-transport system prior to the beginning of such period.";

the paragraph one of Item 3.2 to state in the following edition:

"3.2. On condition of inclusion of the Consumer in the Register of consumers of any supplier in settlement period and lack of overdue debt under this agreement the Operator of GRM provides distribution of the natural gas belonging to the Consumer to border of balance sheet accessory of its object with observance of proper level of reliability, safety, quality and size of pressure of natural gas.";

The subitem 2 of Item 9.1 of the Section IX to state 3) in the following edition:

"2) absence of the Consumer in the Register of consumers of any supplier in settlement period;".

7. Bring in the Standard agreement of storage (downloading, selection) gas approved by the resolution of the National commission performing state regulation in spheres of power and utilities, of September 30, 2015 No. 2499, registered in the Ministry of Justice of Ukraine on November 6, 2015 for No. 1385/27830, the following changes:

Item 3.15 of the Section III to exclude 1).

With respect thereto to consider Item 3.16 Item 3.15;

Item 6.9 of the Section VI to exclude 2).

With respect thereto Items 6.10 - 6.13 to consider respectively Items 6.9 - 6.12.

8. Bring in the Standard agreement of supply of natural gas by the supplier of "the last hope" approved by the resolution of the National commission performing state regulation in spheres of power and utilities, of September 30, 2015 No. 2501, registered in the Ministry of Justice of Ukraine on November 6, 2015 at No. 1387/27832, the following changes:

The paragraph of the sixth of Item 3.2 the Section III to exclude 1);

Item 4.1 of the Section IV to state 2) in the following edition:

"4.1. Supply of natural gas is performed at the price promulgated by the Supplier on the website. Such price is determined by the Supplier according to Item 11 of the Section V of Rules of delivery. New price is obligatory for the Parties from the moment of its promulgation by the Supplier on own website and in printing editions.".

9. Settlement of monthly not balances of customers of transportation services which arose in July, 2018 to perform according to provisions of the Code of gas-transport system which were effective about day of entry into force of this resolution.

10. NKREKP together with the Antimonopoly Committee of Ukraine (under approval) in year from the date of entry into force of this resolution to perform the comprehensive analysis of the mechanism of use of the size of size of adjustment of the marginal price of sale/acquisition of natural gas which is applied to settlement of daily not balances and to consider question of feasibility of introduction of amendments to the Code of gas-transport system following the results of such analysis.

11. To the operator of gas-transport system:

submit for consideration to the National commission performing state regulation in spheres of power and utilities, offers on the procedure of the functioning of the balancing platform in two-month time from the date of following behind day of publication of this resolution in the official printing publication - the Pravitelstvenny Kuryer newspaper;

since August 1, 2018 to provide transportation services of natural gas based on the transportation agreement of the natural gas signed according to the Standard agreement of transportation of natural gas with the changes approved by this resolution;

till May 1, 2018 to post instructions for use of information platform, in particular contact information and working hours of support service of information platform on the website;

enter testing of own information platform with involvement of subjects of the natural gas market;

monthly till August 1, 2018 to provide to the National commission performing state regulation in spheres of power and utilities, the status report of passing of testing of information platform, its filling, and also readiness of the operator of gas-transport system and its information platform for transition to daily balancing.

12. This resolution becomes effective since August 1, 2018, but not earlier than the day following behind day of its publication in the official printing publication - the Pravitelstvenny Kuryer newspaper, except Item 11 of this resolution which becomes effective from the date of, its publication following behind day in the official printing publication - the Pravitelstvenny Kuryer newspaper, the subitem 4 of item 4 of the Changes in the Code of gas-transport system approved by this resolution which becomes effective since June 15, 2018, but not earlier than the day following behind day of its publication in the official printing publication - the Pravitelstvenny Kuryer newspaper, Item 5 of the Changes in the Code of gas-transport system approved by this resolution which becomes effective from the date of, its publication following behind day in the official printing publication - the Pravitelstvenny Kuryer newspaper.

Approved by the Resolution of the National commission performing state regulation in the field of power and utilities of Ukraine of December 27, 2017 No. 1437

Changes in the Code of gas-transport system

1. In Chapter 1 of the Section I:

Item 3 to add 1) with signs and words ", and also operators of trade platforms";

Item 4 to add 2) with new paragraphs of the following content:

"Assistance to increase in liquidity of the natural gas market, in particular to development of the wholesale market of short-term products;

responsibility of all subjects of the natural gas market in case of observance of the rules of balancing established by this Code, in particular regarding payment and receipt of payment for daily not balance and payment for balancing neutrality for ensuring the most effective trade in natural gas.";

3) in Item 5:

third to exclude the paragraph.

With respect thereto the fourth - the seventy seventh to consider paragraphs respectively paragraphs third - the seventy sixth;

in paragraph three of the word "reference of gas-transport system of amount of natural gas by the operator" shall be replaced with words also the sign "the amount of natural gas carried by the operator of gas-transport system";

the ninth to add the paragraph with words and figures "and it is posted by the operator of gas-transport system on the website monthly till the 10th of current month";

after the paragraph of the thirteenth to add with new paragraphs the fourteenth and fifteenth the following content:

"The selection/consumption/giving measured every day - amount of natural gas which accounting is performed by the metering station of natural gas in accordance with the established procedure equipped with system of remote data transmission;

selection/consumption/giving which is not measured every day - amount of natural gas which accounting is performed by the metering station of natural gas (including the equipped calculator/proofreader) which is not equipped with system of remote data transmission;".

With respect thereto the fourteenth - the seventy sixth to consider paragraphs respectively paragraphs the sixteenth - the seventy eighth;

the nineteenth to state the paragraph in the following edition:

"Virtual outlet (virtual point on which there is transfer of natural gas) - point in gas-transport system with uncertain physical arrangement in which customers of transportation services can perform transfer of the natural gas supplied in gas-transport system on daily basis according to requirements of this Code;";

after the paragraph of the twentieth to add with the new paragraph the twenty first the following content:

"The gas exchange - commodity exchange (trade platform) which is created and performs activities according to the Law of Ukraine "About commodity exchange" and with observance of the requirements established by the Law of Ukraine "About the natural gas market", this Code;".

With respect thereto the twenty first - the seventy eighth to consider paragraphs respectively paragraphs the twenty second - the seventy ninth;

after the paragraph of the twenty second to add with new paragraphs twenty third - the twenty fifth the following content:

"Gas days (D) - gas days in which provision of services of transportation of natural gas is performed;

gas days (D + 1) - the gas days following after gas days (D);

gas days (D-1) - gas days, preceding gas days (D)".

With respect thereto twenty third - the seventy ninth to consider paragraphs respectively paragraphs the twenty sixth - the eighty second;

after the paragraph of the twenty seventh to add with new paragraphs the twenty eighth - the thirtieth the following content:

"Gas month (M) - gas month in which provision of services of transportation of natural gas is performed;

gas month (M + 1) - the gas month following after gas month (M);

gas month (M-1) - the gas month preceding gas month (M)".

With respect thereto paragraphs of the twenty eighth - to consider the eighty second respectively paragraphs the thirty first - the eighty fifth;

in the paragraph the thirty sixth "(the order of distribution of capacity, the order of transportation of natural gas, balancing service)" to exclude symbols, words and signs;

in the paragraph the fortieth "(the order of distribution of capacity, the order of transportation of natural gas, balancing service)" to exclude symbols, words and signs;

after the paragraph of the forty second to add with the new paragraph forty third the following content:

"Means of remote data transmission - the means established (organized) in accordance with the established procedure on commercial VOG which provide on continuous basis possibility of remote access to the specified VOG for the purpose of reading (control) and transfer of their data on communication channels to the operator of gas-transport system, to the operator of gas-distribution system, the adjacent gas company;".

With respect thereto forty third - the eighty fifth to consider paragraphs respectively paragraphs the forty fourth - the eighty sixth;

after the paragraph of the forty fourth to add with the new paragraph the forty fifth the following content:

"Information platform - electronic platform in the form of web application on the Internet which functioning and management is provided with the operator of gas-transport system which is used for ensuring provision of services of transportation of natural gas according to requirements of this Code;".

With respect thereto the forty fifth - the eighty sixth to consider paragraphs respectively paragraphs the forty sixth - the eighty seventh;

in the paragraph the forty sixth "the data received in the procedure" to exclude words and sign;

after the paragraph of the forty seventh to add with the new paragraph the forty eighth the following content:

"The short-term standardized product - certain amount of natural gas which is on sale and acquired on trade platform on the terms of transfer within gas days (D) or (D + 1) seven days a week according to rules of trade platform and provisions of this Code;".

With respect thereto paragraphs of the forty eighth - to consider the eighty seventh respectively paragraphs the forty ninth - the eighty eighth;

the fifty fourth to exclude the paragraph.

With respect thereto the fifty fifth - the eighty eighth to consider paragraphs respectively paragraphs the fifty fourth - the eighty seventh;

in the paragraph the fifty fourth shall be replaced with words the words "according to the procedure" "according to";

the fifty fifth to state the paragraph in the following edition:

"Unauthorized selection of natural gas - selection of natural gas in the absence of the consumer in the Register of consumers of the supplier of any supplier during the settlement period; without the conclusion of the relevant contract with the supplier; by unauthorized connection and/or intentionally the damaged metering devices of natural gas or out of scope metering devices; by unauthorized renewal of consumption of natural gas;";

to state the paragraph of the fifty seventh in the following edition:

"The nomination - the prior notice provided by the customer of transportation services to the operator of gas-transport system concerning amounts of natural gas which will be provided by the customer of transportation services within a day to gas-transport system in points of entry and is selected from gas-transport system in exit points;";

after the paragraph of the sixtieth to add with new paragraphs the sixty first and sixty second the following content:

"The operator of trade platform - subject of managing which on the electronic platform organized also provided access to other bidders for placement of offers on purchase and sale of natural gas by them (including possibility of their change or cancellation) and registration of the signed purchase and sale agreements of natural gas between bidders;

the balancing period - gas days (D)".

With respect thereto the sixty first - the eighty seventh to consider paragraphs respectively paragraphs sixty third - the eighty ninth;

in the paragraph the sixty fourth sign, words and symbols", including by partners (consumers) of the customer and their points of commercial accounting (if necessary)" to exclude;

the sixty fifth to replace the paragraph with new four paragraphs of the following content:

"The payment for daily not balance is the amount of means which the customer of transportation services pays or receives according to the extent of daily not balance;

payment for neutrality balancing - payment which is equal to difference between means which were received by the operator of gas-transport system or are subject to payment of gas-transport system to the operator, and means which were paid by the operator of gas-transport system or are subject to payment of gas-transport system by the operator in connection with the actions connected with balancing of gas-transport system which shall be collected by the operator of gas-transport system from the customer of transportation services or is paid by the operator of gas-transport system to the customer of transportation services;

balancing portfolio - set of giving and selections of the customer of transportation services of natural gas;

balancing service - the service provided to the operator of gas-transport system based on the corresponding purchase and sale agreement of the natural gas necessary for settlement of the short-term fluctuations in demand and the offer on natural gas which is not the short-term standardized product;".

With respect thereto paragraphs of the sixty sixth - to consider the eighty ninth respectively paragraphs the sixty ninth - the ninety second;

after the paragraph of the seventy fourth to add with the new paragraph the seventy fifth the following content:

"The register of consumers of the supplier - the list of consumers who on information platform are assigned to certain supplier in settlement period;".

With respect thereto the seventy fifth - the ninety second to consider paragraphs respectively paragraphs the seventy sixth - ninety third;

to state the paragraph of the seventy sixth in the following edition:

"renomination - the change order of the confirmed nomination;";

after the paragraph of the seventy ninth to add with the new paragraph the eightieth the following content:

"Settlement period - gas days (D) and/or the gas month (M) consisting of gas days (D) in which (which) it will be performed rendering transportation services of natural gas (is performed) and according to which (which) will perform the certain procedures provided by this Code, in particular balancing of the amounts of natural gas given and selected by customers of transportation services of natural gas in points of input and output of gas-transport system;".

With respect thereto the eightieth - ninety third to consider paragraphs respectively paragraphs the eighty first - the ninety fourth;

after the paragraph of the eighty fifth to add with new paragraphs the eighty sixth and eighty seventh the following content:

"Trade platform - electronic platform which functioning and management is provided with the operator of trade platform which is used by bidders for placement of offers on purchase and sale of natural gas (including possibility of their change or cancellation), including for settlement of not balances (the short-term fluctuations in demand and the offer) within gas days (D), on which the concluded bargains of purchase and sale of natural gas and functioning according to the rules and conditions of use determined by her operator taking into account requirements of this Code are registered; on which the operator of gas-transport system performs purchase and sale of natural gas for the purpose of ensuring actions for settlement of daily not balances of customers of transportation services;

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