Secretariat initiates case on Ukraine’s public service obligations in the natural gas sector

Gas
22 August 2017

On 22 August, the Secretariat sent an Opening Letter to Ukraine in Case ECS-2/17. The Secretariat takes the preliminary view that public service obligations imposed on subjects on the natural gas market by Resolution No 187 of the Cabinet of Ministers of Ukraine of 22 March 2017 do not comply with the Energy Community acquis communautaire on natural gas.

In particular, the Secretariat took the view that imposed public service obligations go beyond what is necessary in pursuit of the general economic interest, i.e. secure and stable supplies of natural gas to the most vulnerable of Ukraine’s customers, as well as not proportionate and lacking legal certainty. The Secretariat thus preliminarily concludes that the Resolution is non-compliant with the criteria for public service obligations and internal market rules established by Article 3(2) of Directive 2009/73/EC.

The Secretariat decided to initiate the case on the basis of Article 90 of the Treaty upon its own initiative.

The purpose of this initial step in the procedure is to give Ukraine the possibility to react to the allegation of non-compliance with Energy Community law, and enabling the Secretariat to establish the full factual and legal background of the case. According to Articles 7 and 17 of the Rules of Procedure for Dispute Settlement, interested parties may be granted access to the case file and may submit written observations on the present case to the Secretariat during the preliminary procedure. All requests for information on this case should be addressed to the Deputy Director and Legal Counsel at dirk.buschle@energy-community.org or +43 1 535 2222 24 and should make reference to the case number ECS-2/17.

In Scope:

  • Ukraine Ukraine