Tax incentives for investment projects implementation


Utility Costs

In Ukraine, the National Commission - State collegial body established 23 November 2011, exercised by state regulation of utility services. Whose tasks include regulation and licensing activity in the sphere of generation, transmission and supply of heating and water supply and outfall. 134 company"s water supplies and outfall (about 89% market of water) and 298 thermal power plants (about 96% of heat) located under the control of Commission.
Licensing work conducted constantly: licenses prolonged, reregistered, are issued copies. Only during the 2012 National Commission issued in heat supply 391 license, extended a 24, is void and annulled 19, 140 copies issued. In water supplies 33 licenses issued, 6 reissued, 5 copies declared invalid and annulled, and issued 60 licenses.
For today the approval rates for housing and utility services is a prerogative of local authorities and their formation in various regions laid completely different components. In Ukraine, every region has features that directly affect final cost utility services for the consumer - is the location region its remoteness from major distribution centers the level deterioration networks, stations and substations, availability of own water sources the level employee salaries and many others.
In 2012, total market volume utility services in Ukraine amounted to about 45 billion UAH. Of these, market heating for about 30 billion UAH, as well water supply and outfall - about 15 billion UAH, and volume of these markets is increasing annually. Valid for today rates do not cover cost of services, for example, in a heat supply coating is about 70%, water supply - 60%. Moreover, Ukraine has to be changed every year about 2.2 million km of water networks - is 2.9% of their total number, and replace only 0.8% per year, which is four times less than required.
Central heating exists in all major cities of Ukraine (41% population), except Uzhgorod - where local authority has taken decision on transition to individual heating. In the area water supply and water removal situation is same: almost all cities have centralized water supply. But the centralized hot water supplies could to save only 19 Ukrainian cities, which are home about 15% population of Ukraine. The rural population uses individual heating and gas not everywhere - its coal, wood and even peat. Centralized water supply provided just over 22% rural population, and centralized wastewater (sewerage) - only 14%.

The National Commission (NERC) is a public a collegial body, subordinate and accountable to President of Ukraine and Verkhovna Rada of Ukraine, which responsible for state regulation in energy sector.

To housing and utilities sector include cleaning house territory, roof repair, elevators, garbage disposal, and this is potentially competitive market, that is not need of government regulation. Residents can choose one who will clean up their porches, territory around house or remove the garbage.

For today Municipal enterprise "Sevgorvodokanal" provides residents and enterprises of Sevastopol quality drinking water, provides outfall and wastewater treatment. In centralized water supply system involved 6 local water sources, main one being Chernorechenskoye Reservoir, 2 extra: Vilinsky intake, 23 hydro, 19 water pumping stations, 36 wells, 852.177 km of water mains. Every day in city supplied 140 - 150 thousand cubic meters water.
In 2001 - 2004 for hydropower installations 3, 7, 17, 19, № 20, introduced an automated system of pumping stations JSC "Atom" (Kremenchug). Currently, 287.4 thousand city residents, who are subscribers Municipal enterprise "Sevgorvodokanal" receive water for round the clock, which is 92% of total number of subscribers Enterprise.
In Municipal enterprise "Sevgorvodokanal" 150 million registered users of accounts, including 146.4 thousand city residents, 3.6 million - enterprises and establishments of all forms of ownership. To improve service there are 6 calculated plots in different city districts. Were concluded 16 agreements with banks to receive payments, the city has about 100 such points.

Household tariffs set at 5,40 UAH per cubic meter. Of these, 3,41 UAH for water and 1,99 UAH for water disposal.
Tariffs for businesses, organizations and establishments that are financed state and local budgets set at 7,776 UAH per cubic meter. Of these, 5,028 UAH for water supply and 2,748 for water disposal.
Fees for other companies, organizations and institutions are set at 11,448 UAH per cubic meter. Of these, 6,888 UAH for water and 4,56 UAH for water disposal.
As at January 14, 2013 rate for population on water supply, water disposal average in Ukraine is 3,63 UAH per cubic meter.

Design team Municipal enterprise "Sevgorvodokanal" provides services to public on designing of outdoor networks water supply and water disposal, works to construction and installation at laying outdoor networks water supply and water disposal. Municipal enterprise "Sevgorvodokanal" provides services to develop and issue of agreement about relationship the parties; certificates on water supply, electricity and sewerage systems, preparation and issuance certificates for State Inspection Architectural and Construction Control, changes technical conditions and their issuance, prolongation technical conditions for water supply, sewerage systems and electricity objects of architecture Sebastopol, for households and businesses. As well services to develop and delivery of technical specifications for water supply, sewerage systems and electricity objects of architecture design agreement, surveying and documentation allocation of land plots, challenge (check out) representatives Municipal enterprise "Sevgorvodokanal" place to work for people and for businesses and organizations.
Municipal enterprise "Sevgorvodokanal" has the ability to provide subscribers any components for metering of water at affordable rates, subject that the works of "Sevgorvodokanal" staff. According to order of director in "Sevgorvodokanal" approved list additional paid services for physical and legal persons, and by means of specialized group performed work on networks cold water and wastewater for a fee.

Municipal enterprise "Sevteploenergo" has been manufacturing, transportation and supply of thermal energy to central heating and hot water consumers of Sevastopol. Central heating provided 4.8 million square meters area of residential buildings and 1.3 million square meters area of public buildings as well centralized hot water supply is provided by 120 thousand people. Power of own heat sources Municipal enterprise "Sevteploenergo" is 756 MW.
The thermal energy"s production for central heating is produced by 97 heat sources. Annual heat supply for heating is 0.78 million Gcal and 0.23 million Gcal for hot water.
Municipal enterprise "Sevteploenergo" provides heat 3,105 buildings, including 2,649 buildings city housing fund, 85 schools, and 73 kindergartens. The primary fuel for heat supply Sevastopol is natural gas, which is used by 66 boiler houses. Besides 26 boiler houses using coal, 5 use fuel oil. On the balance Municipal enterprise "Sevteploenergo" has 567 km heat networks in two-pipe and 53 central calorific posts. Number of boilers producing heat - 298 pcs, of which 139 with coefficient of efficiency less 82%.

Tariff on hot water at presence water meters for consumer category "Population" is - 14,016 UAH (VAT included) per 1 cubic meter of water.
Tariff on hot water supply, with 16-hour hot water supply per day for consumer category "Population" is – 44,15 UAH (including VAT) for 1 person per month.
The subscription fee every month throughout the year regardless of metering devices heat carrier for category "Population" is – 1,662 UAH (including VAT) / m2.
The payment for consumed heat energy during heating season at presence metering devices coolant (in addition to license fee) for category "Population" is - 103,146 UAH (including VAT) / 1 Gcal.
The payment for consumed heat energy during heating season without metering devices coolant (in addition to license fee) for category "Population" is - 2,606 UAH (including VAT) / m2.
Fees for government organizations and institutions at central heating are:
- In the presence of metering devices heat carrier – 926,160 UAH (including VAT) / 1 Gcal;
- Payment for year-round without metering devices heat carrier - 8,199 UAH (including VAT) / m2;
- Payment during the heating season without metering devices heat carrier - 19,678 UAH (including VAT) / m2.
Tariffs for other consumers and Russian Black Sea Fleet at central heating are:
- In the presence of metering devices heat carrier – 942,840 UAH (including VAT) / 1 Gcal;
- Payment for year-round without metering devices heat carrier - 8,570 UAH (including VAT) / m2;
- Payment during the heating season without of metering devices heat carrier - 20,567 UAH (including VAT) / m2.
As at January 14, 2013 rate for population to thermal energy average in Ukraine is 227 UAH / Gcal.

Based on claim 8 "Rules of Service of centralized heat supply, cold and hot water supply and drainage system", approved by Cabinet Ministers of Ukraine № 630 dated 21.07.2005 - Municipal enterprise "Sevteploenergo" is doing work on contract to provide services for central heating and hot water.
For conclusion contracts for connection of central heating and hot water, to resolve all issues on accruals, obtaining documents, registration of contracts you should contact contractual-complaint Department. The department carries contracts for supply heat energy non-residential premises with juridical persons, entrepreneurs and owners complaint work with debtors.

Public Joint Stock Company "Energy Company" Sevastopolenergo "provides electricity transmission and supply (License series AB № 177339 - the transmission electric energy; License series AB № 177340 - to supply electric energy) to end users. In March 2008, JSC "EC" Sevastopolenergo "passed audit for quality and has received a certificate confirming compliance quality management system requirements of International Standard ISO 9001:2008 in area distribution and supply electric energy.

Tariffs for electricity sold to population, approved by Resolution of National Commission, which is responsible for state electric energy regulation, from 23.04.2012 № 497 (as amended by provisions of NERC from 15.06.2012 № 750, from 13.09.2012 № 1183).
The order of application electric energy tariffs approved by National Commission, which is responsible for state electric energy regulation, from 23.04.2012 № 498.
Tariffs for electricity sold to population:
- For amount consumed to 150 kW ∙ h electricity per month (inclusive) – 0,28 UAH per 1 kW ∙ h (VAT).
- For amount consumed more than 150 kW ∙ h to 800 kW ∙ h electricity per month (inclusive) – 0,3648 UAH per 1 kW ∙ h (VAT).
- For amount consumed in excess of 800 kW ∙ h of electricity per month – 0,96 UAH per 1 kW ∙ h (VAT).
- For many children, foster families and family-type homes, regardless of the volume of electricity consumption – 0,28 UAH per 1 kW ∙ h (VAT).
Tariffs for electricity sold to population, which is calculated with energy provider for total estimated vehicle registration and united by a legal entity, other than dormitories – 0,36 UAH per 1 kW ∙ h (VAT).
Tariffs for electricity sold to consumers, equivalent to the population – 0,36 UAH per 1 kW ∙ h (VAT).
The electrical energy that is consumed in apartment buildings and dormitories for technical purposes (working elevators, pumps and locks and intercom systems belonging to the owners of the apartment house on the right of ownership) and lighting courtyards, steps and number plates sold at the rate of 0,30 UAH per 1 kW ∙ h (without VAT).
Under the Law of Ukraine "On Electric Power Industry", Decree President of Ukraine from 23.11.2011 № 1059 "On the National Commission exercising the state regulation electrical energy," and Cabinet of Ministers of Ukraine from 15.08.2005 № 745 "On transition to uniform electricity tariffs lets go to consumers, "the National Commission, which carries out state regulation electrical energy, decided to establish a February 2013 retail electricity rates against the limits tariff with gradual shift to a uniform retail tariff for consumers in territory of Ukraine: consumer voltage class – 0,75 UAH / kW • h (without VAT), and consumers second voltage class – 0,96 UAH / kW • h (without VAT).
External lighting settlements made at following rates: for consumers voltage class - 0,19 UAH / kW • h (without VAT), and consumers second voltage class - 0,24 UAH / kW • h (without VAT). (Basis on decision NERC from 22.10.2004 № 1030, as amended by Resolution of NERC from 21.02.2008 № 199).
Business entities that implement innovative projects for introduction and manufacture equipment energy production from alternative sources of energy paid at following rates: for consumers voltage class - 0,43 UAH / kW • h (without VAT), and for consumers second voltage class - 0,58 UAH / kW • h (without VAT). (Basis on decision NERC from 23.01.2013 № 36).
Electrical energy sold at rate for second class consumers voltage electrified urban transport - 0,30 UAH / kW • h (without VAT). (According to decision NERC from 17.03.2011 № 344).
Projected average purchase price of electricity in February 2013 - 727,26 UAH / MW • h, calculated in accordance with the Resolution of NERC 22.01.2001 Number 47.

1. Technical Specifications (TS) for connection to electrical network "Sevastopolenergo" must receive the following cases:
- Connection of new electrical installations;
- Increase capacity of existing electrical installations power due to renovation or retrofitting;
- Improving reliability of electrical installations power;
- Change point of attachment current electrical installations.
2. The list of documents to be submitted together with application for a specifications:
2.1 From legal or physical persons (except households):
- The application;
- Questionnaire, signed by applicant and project organization (licensed);
- A copy certificate of state registration to legal entity;
- Contingency plan showing the location of object with reference to existing objects on layout in M1: 2000;
- A copy document confirming right to ownership or use land on which facility is located (state certificate, lease agreement, the decision to transfer land), urban conditions and restrictions of land development;
- A copy duly executed power of attorney to a person who authorized to enter into a contract and sign it.
2.2 From an individual (population):
- The application;
- Questionnaire, signed by Applicant, made by standard form;
- Contingency plan showing object location with reference to existing objects on plan;
- A copy document confirming right to ownership or use land on which the facility is located (state certificate, lease agreement, the decision to transfer the land), urban conditions and restrictions of land development.
3. Procedure for obtaining specifications:
- Submit an application with the complete set accompanying documents employee production and technical department;
- Fill out form agreement to develop specifications and specify details customer;
- Pay the cost of contract;
- To get office application with attached documents and contract with the stamp "paid";
- When ready, get specifications and draft Treaty on realization of specifications production and technical department;
- To sign and deliver to production and technical department agreement on realization of specifications within 20 days from receipt contract.

The procedure for calculating population for services provided gas supply by rules of public services for gas supply, approved Cabinet of Ministers of Ukraine from 09.12.1999 № 2246 (as amended) (the section "Payments", paragraphs 10-21).

Retail prices for natural gas, which used for population needs, International Children's Center "Artek" and Ukrainian Children's Center "Young Guard", approved by National Electricity Regulatory Commission of Ukraine from 13.07.2010 № 812.
Natural gas tariffs for population are from August 1, 2010 for all regions of Ukraine.

Price differentiation:

1. Provided that natural gas volume does not exceed 2500 m3 per year:
- In presence of gas meters – 0,72 UAH for 1 m3 (including VAT).
in absence of gas meters – 0,80 UAH for 1 m3 (including VAT).
2. provided that natural gas amount does not exceed 6000 m3 per year:
- In presence of gas meters – 1,1 UAH for 1 m3 (including VAT).
in absence of gas meters – 1,2 UAH for 1 m3 (including VAT).
3. provided that natural gas amount does not exceed 12,000 m3 per year:
- In presence of gas meters – 2,25 UAH for 1 m3 (including VAT).
- In absence of gas meters – 2,47 UAH for 1 m3 (including VAT).
4. provided that natural gas volume exceeds 12,000 m3 per year:
- In presence of gas meters – 2,68 UAH for 1 m3 (including VAT).
- In absence of gas meters – 2,95 UAH for 1 m3 (including VAT).

Gasification works are performed by specialized companies that licensed to perform gas-hazardous work. Delivery of gas supply system in operation carried out according with the Procedure of acceptance in operation completed construction projects (approved by Cabinet of Ministers from 13.04.2011 number 461). Gas launch is possible only after house commissioning.
To connect city's gas supply system should apply to production and technical department of "Sevastopolgaz" a statement on issue technical specifications. After obtaining specifications apply organization project ("Sevastopolgaz" design team) and perform work home gasification project. Working project to be mandatory approval of "Sevastopolgaz" and if need for Sebastopol City Sanitary-Epidemiological Station and department of Emergencies.
System design group of gas supply is a subdivision "Sevastopolgaz" and performs design work construction of gas distribution pipelines non-gasified areas of individual buildings and horticultural associations, gasification homes individual building, gasification of municipal enterprises and institutions by installing additional gas appliances presence permissive documents required by building codes security of gas supply systems in Ukraine.

District administrations organize timely implementation of measures sanitation district territory, directly objects of economic activity, cottage and garage cooperatives, private residential sector, organizes and conducts activities to prevent and combat illegal dumping.
Defines solid waste carriers in fixed territory committee formed at headquarters housing and municipal services to conduct competition for provision of solid waste removal from public, budget organizations. Contractual relationship for solid waste removal are issued:
- In residential area (apartment buildings) - between balance holder and carrier;
- In private residential sector - between owner private home ownership and carrier;
- The elimination illegal dumping district territory - between district administration and carrier;
- In enterprises, economic activity objects - between business entity and carrier.
Organize reception of solid waste and implement measures for disposal solid waste - municipal enterprise. Monitoring of compliance with current legislation in waste management area is city and district administrations.
State sanitary and epidemiological supervision of compliance with state health regulations, rules and hygienic standards in education, collection, transport, storage and disposal of sanitary-epidemiological service. State Environmental Inspectorate is monitoring compliance with environmental legislation of Ukraine of waste management area.
For servicing city's population uses 95 garbage trucks. When collecting municipal solid waste city territory is used as a unitary system waste collection and separate collection system. Waste collection is carried out by a unitary system, especially in residential areas (in residental house, in private sector), cottage and garage cooperatives. Being introduced into practice separate collection of plastics and cardboard. Separate waste collection system is mainly used by businesses, trade facilities, health care facilities.
Removal of solid waste by specialized enterprises all patterns of ownership (repair and operational enterprises, LLC "KP" Clean City ", LLC" Slavic harbor ", other carriers). Garbage is taken out under contract, usually 2 times a week. Sorting solid waste is carried out directly on landfill - a specialized complex, as well as being hand-selected resource and valuable materials at dump body. Now carried disposal (burial) of waste compaction method and suction soil layers.


To date, tariffs and removal solid waste disposal for population and legal entities enterprises is:
- Exports: 19,56 UAH per 1 cubic meter (78,24 UAH Per 1 ton) - according to housing and budgetary organizations and enterprises, others - agreed price;
- Burial: 10 UAH per cubic meter (40 UAH. Per 1 ton) - according to housing and budgetary organizations and enterprises, 22 UAH. per cubic meter (88 UAH. Per 1 ton) - all the rest.
The payment for removal and disposal wastes impose housing maintenance city enterprises with utility payments. Population paid about 80 - 90% of accounts.

Features of waste management territory approved by City Council session.
Sevastopol City State Administration creates and implements measures sanitary city cleaning and in accordance Resolution Cabinet of Ministers of Ukraine № 1218 sets limits on waste generation and placement for Sevastopol businesses, institutions and organizations.
General Directorate of housing and utilities sector Sevastopol City State Administration is the governing body waste management city area. In turn city's Department of Water Resources City State Administration every year until February 1, preparing next year for approval list owners waste that get limits on waste generation and placement businesses, institutions and organizations of Sevastopol. After that, list approved by Sevastopol State Department of Environmental Protection.