REUTERS
The process of separating the GTS operator from Naftogaz is in the homestretch.
Today, the Energy Community Secretariat issued a positive conclusion on the certification of the Ukrainian GTS Operator (OGTSU) company as the country's gas transmission system operator.
That's according to the press service of Naftogaz of Ukraine.
"We are grateful to the Energy Community Secretariat for the speedy review and positive conclusion on the certification of the OGTSU. This is a very important step to complete the unbundling. Ukraine has once again demonstrated that it is fulfilling its obligations. I am sure that the new operator of the Ukrainian GTS from January 1, 2020, will begin operations beyond the Naftogaz group," the press service quoted Chairman of the Board, Andriy Kobolyev, as saying.
It is noted that in accordance with the requirement by which the energy regulator in Ukraine approved the preliminary decision on certification of the "Ukrainian GTS Operator", the company today submitted the latest documents required.
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"Thus, the process of separating the GTS Operator is in the homestretch. Now all the necessary prerequisites have been formed for the final decision of the regulator to certify the OGTSU and license the company to carry out economic activities for the transmission of natural gas from January 1, 2020," the company statement says.
Naftogaz also noted that before the launch of the new operator, the energy regulator is yet to consider and approve the corresponding tariffs for gas transmission via the Ukrainian GTS.
As UNIAN reported earlier, on November 22, the energy regulator approved the decision on preliminary certification of the Ukrainian GTS Operator company.
"By an Opinion adopted today [December 17] under the Third Energy Package, the Secretariat confirmed that the newly established gas transmission system operator of Ukraine, GTSO, is unbundled in line with the requirements from European law," the Energy Community's Secretariat said on Tuesday. "Unbundling had been suffering from internal disputes and inertia for many years. Today's positive Opinion is essentially the consequence of the recent adoption of a Law on Unbundling by Verkhovna Rada. On the basis of this Law, the vertically integrated Naftogaz group transferred the shares in GTSO to MGU, a holding company controlled by the Ministry of Finance. The Ministry of Finance also equipped GTSO with so-called economic management rights over the transmission assets, which enable the company to use and operate the state-owned system. As a consequence of these transactions, GTSO will operate as an independent system operator (ISO) as from January 1, 2020."
"Certification is being carried out by the Ukrainian regulatory NEURC which has to take utmost account of the Secretariat's Opinion. Accordingly, NEURC will have to condition its final certification decision on the entry into force of the agreements on share-purchase and economic management right. In its Opinion, the Secretariat requests that NEURC pays attention to the financial viability of the new system operator which may be affected by unauthorized offtakes and payment obligations. Once the ISO has gained formal independence, NEURC should also assess the real independence in legal and factual terms of the Naftogaz group," it said.
UNIAN memo. Separation of natural gas transmission activities (activities of the GTS Operator) from production and supply of natural gas will become the key to the formation of an independent operator of the Ukrainian gas transmission system, certified in line with the EU requirements.
The very existence and work of such an operator will strengthen the position and role of Ukraine in the negotiation process with the Russian Federation on the extension of transit and preservation of the Ukrainian gas transmission system from 2020.