This, we hope, will improve the country’s “getting electricity” ratings in the next Doing Business report.
Prior to Jan. 1, when the initiated the Law on Amendments to Laws of Ukraine in Relation to Network Connection Charge of Natural Monopolies went into effect, most of the work had to be done by the customers. Now the situation radically changed.
Except for individual cases related to complex construction work, Kyivenergo has to handle standard connections within 45 days. This includes the approval of the connection project, testing of the equipment performed by Kyivenergo specialized standalone unit – Energosbyt, and the connection procedure (if all necessary documents are available). The company is also obliged to notify its clients about any delays in the works, either related to the regulatory approval system, or to the complexity of the project.
It’s worth to note, however, that other permits related to hooking up to the grid, such as excavation work permit, permit of the State Architectural and Construction Supervision Inspectorate and approval of the State Service of Mining Supervision and Industrial Safety are the procedures which cannot be affected by the power supplying company.
All European countries have long ago completed their energy sector reforms, after spending years developing and adjusting the procedures for connecting new consumers to the grid. It has only been a year since Ukraine started developing new procedures and regulations. Building new relations with the clients will require a certain transitional period, and the task of an energy company is to speed up the transition to new operating standards and to improve internal company procedures.
The clearer the procedure is, the easier it will be for the consumer to complete it. Ukraine is still at the beginning of this path. The regulator has already set the rules, as the National Electricity Regulatory Commission has approved the methodology for calculation of fees for connection of electric installations to the grid, payment rates, and connection guidelines. A lot has yet to be done: we must test all stages of the procedure and make sure it is simple and quick. The result depends not only on good interaction of Kyivenergo departments but also on prompt obtaining of the required permits, specifically land titles and titles to assets, from state authorities.
The consumer can also speed up the connection to the grid by accurately and properly preparing the required applications. Kyivenergo on its part has published a clear step-by-step procedure for connection on its website kyivenergo.ua. Consumers can find sample forms to be filled in, the list of required documents and user-friendly instructions in the New Connections section. Furthermore, the company indicates deadlines for each step of the procedure and addresses for submission of applications. Other online services to make the connection easier for consumers will be launched soon. For additional support clients can go to Kyivenergo support centres where they can get help filling in the applications or contact the call centre at 15-88 (number for landlines).
Unfortunately, one of the most time-consuming procedures is the approval of design documentation. Poor quality of such documentation results in numerous critical comments to the project design that need to be rectified by the contractors. Often contractors acting as the official representatives of the customer withhold information about multiple deficiencies in the project or a longer project lead time.
Yet customers tend to attribute long waiting times to processing by Kyivenergo. In fact, however, Kyivenergo takes not more than 15 days as required by the law to approve the project design. During this period the company either gives its conclusion on the project or the recommendations for its improvement. If the conclusion is issued later that expected it is caused by nothing else but multiple faults identified in the customer’s design documentation, the reason that cannot be affected by Kyivenergo.
Thus, the permits can be received quickly only provided that all three parties – the energy supplying company, the customer, and the authorities granting the respective permits –take efforts to achieve this. If each party is aware of its area of responsibility and takes all necessary efforts to satisfy the consumer’s needs, the consumers will get the result they hope for. Ukraine is under way to these changes and will persist till it reaches its goal.
Dmitriy Sukhin is deputy director of planning and asset development of Kyiv Electrical Networks, a unit of Kyivenergo.
