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

of May 25, 2017 No. 690

About approval of the Procedure for forming of rates for oil transportation and oil products bulk distribution lines

According to article 5 of the Law of Ukraine "About natural monopolies" 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 the Procedure for forming of rates for oil transportation and oil products by bulk distribution lines which is applied.

2. This resolution 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 May 25, 2017 No. 690

Procedure for forming of rates for oil transportation and oil products bulk distribution lines

1. General provisions

1.1. This Procedure is developed according to the Tax code of Ukraine, the laws of Ukraine "About natural monopolies", "About the National commission performing state regulation in the field of power and utilities".

1.2. This Procedure determines the principles of forming and calculation of rates for transportation services of oil (oil products) for the territory of Ukraine trunk oil pipelines (oil pipelines) and the procedure of their installation and review.

1.3. Action of this Procedure extends to all subjects performing economic activity on oil transportation (oil products) on bulk distribution lines (further - the licensee, the subject of managing), and is applied by the National commission performing state regulation in spheres of power and utilities in case of establishment and review of rates for oil transportation (oil products) on bulk distribution lines to consumers of Ukraine.

This Procedure is not applied in case of establishment of rates for oil transportation (oil products) on bulk distribution lines on the basis of the long-term stimulating regulation.

1.4. In this Procedure terms are used in the following values:

base period - the period lasting the year preceding the planned period;

the site - linear part of the oil pipeline without branches which can be limited in the initial and final points oil pumping (nefteproduktoperekachivayushchy) stations or Items of acceptance/delivery of oil (oil products);

economically reasonable expenses on the planned period - expenses of the subject of managing which planning is performed with observance of requirements of standards, standard rates, regulations, production schedules, consisting of the expenses connected with operating activiies and finance costs (except the financial expenses included in cost of qualification assets according to provisions (standards) of financial accounting);

cost element - set of economically homogeneous expenses of the subject of managing on oil transportation (oil products) on bulk distribution lines;

the customer - physical person, physical person entrepreneur or the legal entity who based on the agreement orders provision of transportation service of oil (oil products) on bulk distribution lines;

the statement - the written appeal of the subject of managing to NKREKP about establishment or review of the rates provided by this Procedure;

investing program - the plan of capital investments which contains complex of works and actions, the schedule of their accomplishment and sources of financing;

transportation route - specific (certain) delivery option of oil (oil products) which is determined by starting point of acceptance of oil (oil products) in pipeline system and terminal point of delivery of oil (oil products) to the customer or his transfers to other transport enterprise. The pipeline companies can specify in addition other nodal Items of passing of oil (oil products) in case of provision of services;

rate for oil transportation (oil products) on bulk distribution lines - the realization value expressed in cash to the customer of transportation service of 1 t. oils (oil products) on bulk distribution lines along certain route of transportation;

review of rates - change of price levels by their installation;

cross subsidies - funds transfer or expense allocation within one company or between the related companies for financial support of one company or type of activity at the expense of another, except content of the objects having strategic state importance is also the integral component of petrotransport system;

the planned tariff revenue - the planned income (revenue) of the company from implementation of activities for oil transportation (oil products) on bulk distribution lines for the planned period (including along separate routes of transportation) for financing of reasonable expenses, payment of obligatory taxes and fees, and also ensuring necessary profit level;

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