Contracts for the use and supply of electricity will expire at the end of the year

Contracts for the use of electricity (for households) and for the supply of electricity between consumers and regional power companies will cease to be valid as of January 1, 2019.

Next year, all power supply companies will be required to separate their electricity distribution activities from other activities of the vertically integrated company (oblenergo), in particular by establishment of an electricity supplier. A contract for the power supply implies its commercial sale to consumers as a commodity product, Oksana Kryvenko, the Chairwoman of the National Commission for Regulation of Energy and Utilities reported on her Facebook page.

According to the law, all tariffs remain valid, and only power supplier changes. The "Zakarpattyaoblenergo" PJSC establishes a new legal entity – the company that will be supplying power, and the "Zakarpattyaoblenergo" PJSC will be only distributing it. Consumers should sign the contrats with the new company.

Recall, the Law of Ukraine "On the Electricity Market" came into force on June 11, 2017.  It was then that the process of the Ukraine’s electricity industry reforming began. One the main stages of the reform is the separation of the electricity distribution function from the functions of production, transmission and supply, that is, the establishment of appropriate separate legal entities.