How to obtain an electricity supply, trading, or generation license: legal and practical steps

Launching a company in the electricity market is not only a promising business venture during these times of energy transformation, but also a complex legal and regulatory process. The energy sector in Ukraine is strictly regulated by government authorities, and obtaining a license, complying with NEURC requirements, drafting contracts, and ensuring legal compliance require a deep understanding of industry standards and procedures. Any error during the document preparation stage or in selecting the organizational and legal structure can lead to delays, fines, or even a denial of authorization to operate.

That is why, for all your legal needs, your reliable partner is Fedotov & Partners – a team of lawyers with years of experience in supporting energy projects. We provide full-cycle legal support: from company registration and license acquisition to developing your contractual framework and representing your interests before regulatory bodies. With us, you will have a clear, secure, and effective path to launching your own electricity supply company.

How do you start an electricity supply business in Ukraine?

To launch an electricity supply company in Ukraine, you must complete several key steps and adhere to specific legal requirements:

1. Legal entity registration
   
   • First, you need to register your company, typically as a Limited Liability Company (LLC) or a Joint-Stock Company (JSC). An LLC is the most common form for energy businesses due to its simplicity and flexibility.
   • During registration, you must specify the appropriate NACE codes for electricity trading.
   • Company registration takes approximately 3 days, provided the documents are prepared correctly.
   • You will also need to obtain a digital signature (EDS) to access online market systems.
   • VAT registration.
2. Obtaining a license from the National Energy and Utilities Regulatory Commission (NEURC)
   
   • A license is required to supply electricity to end consumers.
   • You must prepare a package of documents, including company information and a website that meets licensing requirements.
   • The application review process takes approximately 2 weeks.
   • It is impossible to obtain a license without a website.
3. Registration as a participant in the wholesale energy market (electricity market)
   
   • You must obtain an EIC code (Energy Identification Code for market participants).
   • Enter into mandatory agreements with the transmission system operator (Ukrenergo), such as the electricity transmission services agreement and the electricity imbalance settlement agreement.
   • Open special escrow bank accounts for financial transactions.
   • Obtain an ECRB code as a wholesale energy market participant.
4. Sign an agreement with JSC Market Operator to participate in the day-ahead and intraday markets.
5. Complete accreditation on the Ukrainian Energy Exchange. 
6. Sign agreements with distribution system operators (Oblenergo) in the regions where you plan to supply end consumers.
7. Conclude electricity supply contracts with consumers in accordance with current market rules.

Once these steps are completed, the company will be legally authorized to begin electricity supply operations in Ukraine.

In summary, the main stages of launching an electricity supply company are:

• Registering an LLC with the appropriate NACE codes and VAT status;
• Obtaining a NEURC license;
• Registering as an electricity market participant (obtaining EIC and ECRB codes, signing agreements);
• Organizing the technical infrastructure and financial instruments.

How do you obtain an electricity trader license in Ukraine?

Electricity trading in Ukraine, much like electricity supply, is a licensed activity. The differences lie in the documentation requirements and technical criteria that companies must meet. However, if a company has already obtained an electricity supplier license, it is not required to obtain a separate trading license, as electricity suppliers are authorized to engage in trading under their existing license terms.

A trader is a market participant that buys and sells electricity without owning its own grid or having direct contracts with end consumers.
Once the company is established, the following steps are required to obtain a trader license:

• submit an application to the NEURC;
• provide information about the company website, ensuring it meets licensing requirements;
• ensure the company is not under the control of an aggressor state;
• pay the license fee.

The license is issued for an unlimited term and allows for buying and selling operations across all market segments: the Day-Ahead Market (DAM), the Intraday Market (IDM), entering into bilateral contracts, as well as importing and exporting, among others.

Obtaining an electricity generation license

A producer is an entity that owns generating capacity (thermal power plants, combined heat and power plants, renewable energy sources, cogeneration units, etc.).
To obtain a producer license, you must:

• provide documents proving ownership or the right to use the land plot and generation facilities;
• confirm that the equipment has been commissioned (certificates of completion, certificates of conformity);
• ensure compliance with environmental and technical standards;
• have grid connection agreements with the distribution or transmission system operator;
• provide details of a website that meets licensing requirements;
• submit a complete package of documents to the NEURC and pay the license fee.

 A producer license provides access to selling electricity on the energy exchange, the bilateral contracts market, the day-ahead market, the intraday market, the balancing market, the ancillary services market, and for the import/export of electricity.

An important detail: unlike suppliers and traders, for producers, the key factor is confirming the existence and technical readiness of generation facilities.

Starting a company in the power sector requires precision, attention to regulatory requirements, and clear coordination of all stages from registration to the commencement of commercial operations. Any mistake can lead to lengthy delays or financial losses.

Fedotov & Partners support clients at every step: preparing documents, interacting with regulators, providing advice on energy legislation, and minimizing legal risks. Full support from a team of experts ensures a fast and secure business launch in the energy market.

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