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The Law of Ukraine "On the Natural Gas Market" adopted accounting proposals of the Expert Advisory Center “Legal Analytics”
Saturday, 25 April 2015 08:31

logo.enThe Parliament of Ukraine adopted the Law of Ukraine "On the Natural Gas Market" on April 9, 2015.

Expert Advisory Center “Legal Analytics” (EACLA) researched the problem of ensuring competition in the natural gas market in the sphere of consumers’ connection to the Unified Gas Transportation System of Ukraine (UGTSU) within two years. The EACLA, representing entrepreneurs in the natural gas that, addressed appropriate state authorities to initiate discussion and solving existing problems and to prevent monopolization of the market by monopolists in the gas sector. The EACLA in cooperation with the other civil society members formed proposals for amendments to the legislation of Ukraine to eliminate restrictions for entrepreneurs to conduct their business activities in the field of consumers’ connection to UGTSU that resulted because of the amendments to the legislation of Ukraine adopted in recent years.

The main essence of the proposals submitted by the EACLA and supported by the Committee for Enterprise, antitrust and regulatory policies, and later by the other committees of Parliament and the Ministry of Fuel and Energy of Ukraine, was to provide consumers' rights to free choice of contractors/entrepreneurs that carry out works of connecting to the UGTSU. At the suggestion of the public a fee for connection to the UGTSU is determined according to the contract between the customer and operator of gas transmission or gas distribution system based on clear methodology, taking into account the type and characteristics of connection. In addition, the customers have the right to initiate an independent examination of the data for compliance with applicable standards, rules and regulations in the sphere of joining to the UGTSU.

Thus, the law creates the conditions for a new model of the natural gas market, based on the principles of free and fair competition focused on providing a high level of protection of consumer rights and interests.

When the President of Ukraine signs the law, it shall take effect on the date of publication, but shall be applicable from October 1, 2015 (except for certain provisions that become effective later).