Electricity supply to a client is carried out if:

1) the consumer's facility is connected to the system operator's networks in the manner prescribed by law;

2) the electricity supplier, under an agreement with the system operator, has gained access to the networks and the possibility to sell electricity within the system operator's territory of activity;

3) the consumer is a party to valid agreements:

on the provision of electricity distribution (transmission) services;

on the supply of electricity to the consumer or on the supply of electricity by a universal service provider or on the supply of electricity by a "last resort" provider;

on the provision of commercial electricity metering services, except in cases where the role of the commercial metering service provider is performed by the system operator to whose networks this consumer is connected;

4) for all points of commercial metering at the facility (facilities) of the consumer through which the supply of electricity is carried out (planned), an agreement has been concluded with the commercial metering service provider for the provision of commercial electricity metering services;

5) there is no fact of termination/suspension of electricity supply or provision of electricity distribution (transmission) services in cases provided by energy legislation;

6) there is no overdue debt under electricity supply agreements or distribution/transmission system service agreements.

In accordance with the Retail Electricity Market Rules, consumption of electricity without concluding an agreement with an electricity supplier is not permitted (except in cases where electricity is supplied to the consumer by a "last resort" supplier).

To consider the conclusion of an electricity supply agreement or a universal service supply agreement under the terms of the chosen commercial offer, the client must submit to MIUTEC LLC an application for accession to the relevant agreement along with a set of documents provided for by the Retail Electricity Market Rules.

For more details on the terms of concluding agreements and required documents, see the section Terms of accession and agreement

For the period from 01.01.2019 to 01.01.2021, the Cabinet of Ministers of Ukraine approved SE "Ukrinternenergo" as the "last resort" supplier (LRS) throughout the territory of Ukraine.

The LRS, among other things, provides electricity supply services if a consumer has not selected an electricity supplier, particularly after the termination (cancellation) of an agreement with a previous supplier.

The LRS provides electricity supply to a consumer for no more than 90 consecutive days. After this period, the LRS terminates the electricity supply to the consumer.

If the consumer has not concluded an agreement with a new electricity supplier, the distribution and supply of electricity are terminated by disconnecting the electrical installation.

The "day-ahead" market (DAM) is one of the segments of the competitive electricity market that began operating on July 1, 2019. It is an electronic trading system where the sale and purchase of electricity take place. Based on the trading results, the cost of electricity is determined for each participating party for a specific day and hour.

In addition to the "day-ahead" market, where the largest volume of electricity is traded, the legislation also provides for such organized electricity market segments as the intraday market, balancing market, and ancillary services market.

The price on the "day-ahead" market changes hourly. Its formation is influenced by the demand and supply of electricity from all market participants for each specific hour during the day.

Demand and supply curves are formed every hour on the relevant electronic platform administered by SE "Market Operator". Demand is formed by suppliers based on their clients' requests and by consumers who buy directly on this market, while offers are formed by power-generating companies and traders. The intersection of these curves determines a single price for all market participants (power-generating enterprises, electricity suppliers, and consumers), at which electricity will be sold and purchased in this market segment at a specific hour.

MIUTEC LLC transparently and objectively informs clients about the price calculation applied. Information on electricity purchase prices on the "day-ahead" market (DAM price) is published on the website of the Market Operator (SE "Market Operator"). https://www.oree.com.ua/index.php/control/results_mo/DAM

When calculating the purchase cost, the Company uses the data from the Settlement Administrator (NPC "Ukrenergo") regarding hourly consumption volumes for Group B metering sites, applying them to the corresponding prices published by the Market Operator. https://www.oree.com.ua/index.php/pricectr

In this way, the Company's weighted average purchase prices on the "day-ahead" market are calculated.

The relevant calculation along with the data is published on the Company's website in the section "Electricity Price". Clients can always verify whether the prices used by the Company in the calculation correspond to the prices published by the Market Operator on its website.

Group "A" consumers are consumers whose metering sites are provided with an electricity metering scheme accepted for electricity settlements (where electricity inflow to the site is measured) with installed and commissioned LUOD, ASKOE, ASZD, or differential (hourly, zonal) electricity meters with guaranteed daily reading of indications; they belong to group "A" provided that the designated consumer, ASKOE Operator, or CMPS provides daily reading, formation, and transmission of the formed hourly commercial metering data to the DSO/NPC.

Group "B" consumers are consumers whose metering sites do not meet the requirements for organizing electricity metering for Group "A".

The procedure for assigning consumer metering sites to Group "A" is regulated by the appendix to the Temporary Procedure for Determining the Volumes of Electricity Purchase in the Electricity Market by Electricity Suppliers and Distribution System Operators for the Transition Period, (https://zakon.rada.gov.ua/laws/show/v2118874-18) approved by NEURC Resolution No. 2118 dated December 28, 2018.

For Group "A" consumers, who are consumers at free prices, the hourly price will be calculated based on the actual hourly electricity consumption schedule of these clients and the hourly electricity purchase prices in the market.

For Group "B" consumers, the price will be calculated taking into account the hourly consumption schedule of all of the supplier's Group "B" clients as a whole and the hourly market cost.

An EIC code of a metering point is an identification code in the electricity market in Ukraine based on the use of the ENTSO-E EIC identification system.

All distribution system operators are required to assign EIC codes to electricity metering points (meters). It should be located in the application for accession to the terms of the consumer agreement on the provision of electricity distribution services.

System operators and other parties registered as commercial metering service providers (CMSP) must ensure the reading of data at commercial metering points. They must also receive measurement results (meter readings) from market participants and/or CMSPs, and perform functions for processing, forming, profiling, validating, aggregating, and exchanging commercial metering data.

Suppliers are market participants; according to current regulations, they receive the necessary data for settlements with consumers from the DSOs, which must ensure the daily transfer of data regarding the hourly electricity consumption values of the consumer to the electricity supplier.

Payment documents (invoices) for payment are provided to consumers in the relevant structural subdivisions of the electricity supplier and in a format convenient for the consumer, as provided for in the electricity supply agreement. This can be done via the consumer's personal page on the supplier's website or by e-mail, fax, mail, courier, or other methods using information technology in an electronic document management system.

The payment document (invoice) must be provided to the consumer within the timeframe and in the manner determined according to the commercial offer chosen by the consumer or the terms of the agreement.

The date of receipt of the payment document is considered to be:

the date of delivery, confirmed by the signature of the recipient (the consumer or their authorized person);

the date of its receipt from the courier;

a mark of registration of incoming correspondence;

the date of its opening by the consumer on the personal page (personal account) of the consumer on the official website of the electricity supplier or system operator, which can be confirmed by the software platform that ensures the operation of the personal page, determining the date and time of its opening;

the date of receipt by other means of communication (e-mail, fax, etc.) or in another way using information technology in an electronic document management system in the manner provided for by the electricity supply agreement and the commercial offer and/or the consumer's agreement for electricity distribution (transmission);

the third calendar day from the date of its receipt by the post office serving the territory where the consumer's facility is located (if sent by registered or declared value mail).

The consumer is obliged to report monthly on the readings of electricity metering devices as determined by the terms of the agreement on the provision of distribution/transmission services to the consumer. A change of supplier in no way affects this. Deadlines for submitting reports, the method of submission, and the format are determined by the terms of agreements with distribution/transmission system operators (DSO, TSO) that perform the function of a commercial metering service provider. Usually, the report is submitted to the local district electrical networks (RES) office, through the operator's electronic account, or by other means specified in the agreement with the DSO/TSO.

Of course, a change of supplier does not interrupt the validity of concluded agreements on the provision of electricity distribution/transmission services to the consumer and does not cancel the obligations of the parties to such agreements.

According to the Retail Electricity Market Rules, the consumer only has the right to change the payment option for distribution/transmission services. Payment can be made either by the consumer directly to the system operator or through the current supplier.

In the electricity supply agreement with the chosen supplier, it is mandatory to mark the selected payment option for distribution services. All other provisions of agreements with system operators remain in force, and accordingly, the consumer is obliged to fulfill them and pay the invoices.

The reporting procedure for the consumer remains unchanged. The consumer submits a report on consumed electricity to the distribution system operator from whose networks the consumer's enterprise is powered, at the end of the billing period. It is not necessary to submit a separate report to the supplier.

If a legal entity is a tenant and has a concluded agreement on electricity distribution with the distribution system operator, it can become a consumer.

A sub-consumer has the right to independently choose an electricity supplier, regardless of who supplies the main consumer, provided the sub-consumer has concluded an electricity distribution agreement with the distribution system operator. In this case, it does not matter who supplies the main consumer.

The determination of the volume of consumed electricity for all electricity consumers who have concluded distribution agreements with distribution system operators remains unchanged, regardless of who provides the supply to sub-consumers and the main consumer.

Payment for the invoice issued by the electricity supplier must be made by the consumer who purchases electricity in accordance with the terms of the agreement with the electricity supplier, exclusively to the current account with a special regime of use of this electricity supplier in one of the authorized banks.

In case the consumer transfers funds for electricity to another account of the electricity supplier, the latter must return these funds upon the consumer's application or on its own initiative within 3 working days from the moment of their receipt or from the day of receiving information regarding the consumer's bank details.

If the funds paid to another account were not returned within this period, these amounts are subject to recovery to the state budget as a sanction for the committed offense. Crediting funds to the state budget does not exempt their recipients from returning these funds to the relevant market participant.

In case of a change in electricity tariffs (prices), the debt is paid at the tariffs (prices) that were in effect during the period for which the debt is being paid.

Today, it is impossible to overstate the importance of forecasting consumption volumes, especially after the changes to the market rules in March 2020 regarding price formation in the imbalances market, which strengthened the responsibility for causing them.

Forecasting is necessary primarily for the sake of economy, as entering imbalances is now too expensive. If the actual consumption volume decreases relative to the ordered volume, the excess purchased volume of electricity is sold on the imbalance market at a lower price than the price at which it was previously purchased. If the actual consumption volume increases relative to the ordered volume, the deficit electricity is purchased by the supplier at imbalance market prices, which is significantly more expensive than its cost during the same hours in the electricity market.

In both cases, the supplier and the consumer suffer losses, some of which the supplier takes upon itself. Therefore, the question "why is forecasting needed" can be answered exhaustively — to buy electricity cheaper.

Another question is, how to learn to forecast? For Group B consumers with small consumption volumes, forecasting can be done based on monthly consumption data, adjusting for seasonality, as in winter it is necessary to account for electrical appliances used for heating, and in summer — for air conditioning devices.

For industrial consumers, forecasting should be guided not only by monthly/seasonal data but also take into account production plans, work schedules, equipment repairs, and even ambient temperature, while maintaining constant communication with the supplier to promptly inform about any changes in needs.

A consumer's electricity imbalance is the difference between the actual electricity consumption volumes and the electricity volumes that were ordered from the supplier.

If the volumes of electricity consumed by the consumer are less than those ordered from the supplier, the latter sells the difference between the ordered and consumed volume on the imbalance market at a lower price than the purchase price on the electricity market.

Otherwise, when the volumes of electricity consumed by the consumer exceed those ordered from the supplier, the latter purchases the difference between the consumed and ordered volume on the imbalance market at a higher price than the price of advance purchase on the electricity market.

Tolerance is the allowable deviation of the actual electricity consumption volume by the consumer from the ordered electricity volumes according to the agreement.

Simply put, this is a permitted amount of deviation of actual electricity consumption from the declared one, within which no additional fee for the caused imbalances is charged.

There are two types of electrical energy:

Active – performs consistently useful work;

Reactive – technologically harmful circulation of energy between power supply sources and consumer electrical receivers caused by electromagnetic imbalance of electrical installations.

Reactive power flow services are provided by the distribution/transmission system operator to whose networks the consumer's electrical installations are connected, or by another network owner.

Relations between the electricity consumer and the system operator/network owner are regulated by a separate agreement (on the provision of services for ensuring reactive power flows or an annex to the consumer agreement on the provision of electricity distribution/transmission services).

Thus, payment for reactive power flows is made exclusively to the account of the system operator under the terms of the agreement concluded with them.

Usually, the appearance of new metering points is possible under the following circumstances:

- construction of a new consumer facility;

- change of consumer, form of ownership, or owner of existing electrical installations.

The electricity consumer must ensure the possibility of distribution (delivery) of electricity to the electrical installations at the facility, regardless of the reasons for the appearance of a new point. To do this, a consumer agreement on the provision of distribution services or an additional agreement on the inclusion of an additional point in the existing agreement is concluded between the distribution (transmission) system operator and such consumer.

The consumer can choose an electricity supplier for a new facility/commercial metering point only after settling relations with the system operator.