On 17 February 2019, the newly established gas transmission system operator of Ukraine, GTSO, was unbundled in line with the requirements from European law. This was done under the EU’s third energy package, aimed at improving the operation of the internal energy market and resolving certain structural problems. The decision was taken by the Energy Community Secretariat and was preconditioned by the adoption of a law on unbundling by Verkhovna Rada.

According this law, the Naftogaz group transferred the shares in GTSO to MGU, a holding company controlled by the Ministry of Finance, in turn equipping GTSO with economic management rights over the transmission assets. As a result of these transactions, as of 1 January 2020, GTSO will operate as an independent system operator (ISO) and be able to use and operate the state-owned system.

Certification is awarded by the Ukrainian regulatory authority, the National Energy and Utilities Regulatory Commission (NEURC), which has to take into consideration the recommendations of the Energy Community Secretariat, acting as a watchdog for ongoing processes relating to Naftogaz’s independence. Once all threats related to unauthorised offtakes and payment obligations are eliminated, NEURC will assess the real independence of the Naftogaz group in a legal sense. 

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Press release

EU4Energy Programme