President Petro Poroshenko has signed the law on the National Commission on State Regulation of Energy and Utilities (the Energy Commission).
This was announced on the webpage for the draft law No. 2966-D on the website of the parliament, Ukrainian News Agency reports.
The law stipulates that members of the commission are to be appointed by competition for periods of six years, with periodic rotation, and that from 1 January 2017, the commission is to be financed with proceeds to the special fund of the national budget from license-holders' fees for regulation.
According to the law, members of the commission members are to be approved by the President on basis of decision of the competition committee.
The competition committee has five members: two selected by the Parliament (one from the Committee on Housing and Utility Services and one from the Committee on the Fuel and Energy Sector and Nuclear Safety each), two by the President and one by the Cabinet of Ministers after a recommendation of the Ministry of Energy and Coal Industry.
The Energy Commission is to have seven members including the chairman.
Its members are to be appointed for six years without the right to occupy the position for more than two terms.
Not more than two new members can be appointed (or reappointed) within each calendar year except cases when more than two Commission members are relieved early within this period.
The chairman is elected by the members by secret vote. The chairman is re-elected once every two years after the date of approval of the new composition of the Energy Commission.
Before July 1, the chairman is to submit to the parliament's Committee on Budget Policy the Commission's draft budget for the next year.
The base for regulation fees is companies' income from licensing operations for the reporting quarter.
The rate of the regulation fees will be determined by the Commission by dividing the planned finance needs for the next needs by the companies' aggregate income from the licensed operations for the previous years.
The maximum rate of such contribution is 0.1% of the company's quarterly revenue from the licensed operations.
The contribution for the regulation is to be paid to the special fund of the state budget on quarterly basis within the first 30 days of the next quarter.
According to the final provisions of the law, the rules on financing the commission with proceeds from regulatory fees paid by licensees will come into force on January 1, 2017.
They also stipulate that the chairman and members of the commission who are in office at the date of introduction of this law are subject to rotation by the president of Ukraine, which means that members of the commission are to be replaced within the following periods: three members no later than 6 months from the date of introduction of the law; 2 members no later than 12 months; 2 members no later than 18 months.
As Ukrainian News Agency earlier reported, the parliament adopted the draft law on September 22 and sent it to Poroshenko on October 13.
The Energy Commission exercises government regulation of natural monopoly entities in the electric power industry, heating supply, oil and gas sector, centralized water supply and sewerage, and also ensures implementation of price and tariff policies in these fields.
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