Authorization
In July 2014, a Special Settlements Center (similar to the Ukrainian Wholesale Electricity Market) was set up in Crimea. The Settlements Center is a legal entity defined as the only authority to procure electricity from all producers both in Crimea and beyond, for delivery to Crimean customers.
At the same time, according to the Decision of the Cabinet of Ministers of Ukraine, from May 29, 2014 since June 1, 2014 only the state foreign trade company "Ukrinterenergo" may procure and supply electricity to Crimea. In turn, PJSC "DTEK Krymenergo" shall purchase electricity for Crimea from the company "Ukrinterenergo" and then sell it to the "Settlements Center."
It should be noted that in July 2014 the Ministry of Fuel and Energy of Crimea initiated changes to the Resolution of the State Council of Crimea "On Issues of Stable Operation of the Fuel and Energy Complex and Housing and Utilities in the Republic of Crimea". Thus, the Ministry expects that the State Council will set rates for electricity in accordance with the laws of Russia for generation companies that produce electricity from renewable energy sources in the amount recorded in the export and import contract between "Ukrinterenergo" and the branch DTEK "Krymenergo" of DTEK Krymenergo PJSC for 2014, which is 3.42 rubles per 1 kW/h (net of VAT), except for cases of regulated bilateral contracts between such generation enterprises and buyers with the rates established by the executive authority empowered to carry out state regulation in the relevant area in accordance with the laws of Russia.
Source Arzinger Legal Alert
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