Ukraine's New TSO Gets EU Approval

The Energy Community Secretariat, which helps European states to develop energy policies that will fit with EU law, has endorsed the draft certification of a new independent transmission system operator (TSO) in Ukraine, national gas firm Naftogaz said on December 17.

Gas TSO of Ukraine (GTSOU) was given preliminary certification as Ukraine’s TSO by the country’s energy regulator, NEURC, in late November. The documents were then sent to the Energy Community for confirmation.

GTSOU is set to manage Ukraine’s gas pipeline system, currently controlled by Naftogaz. It will be owned by Gas Trunklines of Ukraine (MGU), which in turn is managed by the finance ministry.

Naftogaz chairman Andriy Kobolev said the Secretariat’s approval was a critical step in the company’s unbundling, saying he was “sure” that GTSOU would assume its new role on January 1 as planned.

According to Naftogaz, all prerequisites are in place for NEURC to take a final decision on GTSOU’s certification. But the regulator must also set tariffs for gas transportation before the entity can begin operating.

Ukraine wants to agree new terms for gas transit with Gazprom based on EU rules, which means having an independent TSO to sign a contract with the Russian supplier. But the existing transit deal between Gazprom and Naftogaz is due to expire on December 31.