Ukraine’s electric power system is comprised of trunk (with the voltage from 220 kW to 750 kW), interstate (all voltage classes) and distribution (with the voltage of up to 110 (150) kW inclusively) electricity networks, and a complex of substations and transformers.

Trunk electricity networks are intended to transmit electricity from a producer to the points of connection of local (distribution) networks. Distribution networks transmit electricity from a trunk network and/or power plant to consumers. The operator of trunk and interstate electricity networks is Ukrenergo NPC, while distribution networks are operated by distribution system operators (DSOs), or oblenergo companies. These companies are responsible for safe, reliable and efficient operation, maintenance and development of electricity networks. In addition, being natural monopolists in the areas of electricity transmission and distribution, their activity is regulated by the government, in particular, with regard to tariffing, terms of connecting to power generating networks, and other. 

Major problems of electricity transmission and distribution systems are high degree of wear of their infrastructure and insufficient funding of their development and modernization. Every year, investment programs are developed by system operators and approved by the regulator (NEURC). In 2019, the actual amount of investments in distribution systems was almost UAH 5 billion, and further UAH 30.1 billion was invested in trunk electricity networks. But at the same time, UAH 0.52 billion of the total planned investments was underfunded.

To protect consumer rights, the NEURC approved guaranteed quality standards for electricity supply services. An electricity supplier or a distribution system operator failing to maintain required quality indicators is required to provide compensation to consumers or customers. Thus, during 2019 Ukrainian DSOs paid compensations to 16,034 consumers in the total amount of UAH 2.36 million.


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