BUSINESS PROTECTION DURING CHANGE OF VOLTAGE CLASS (CHALLENGING THE ACTIONS OF DSOs)
Regional Distribution System Operators (DSOs), represented by regional power distribution companies, are increasingly mentioned in business complaints due to systemic violations in the electricity distribution sector. Improper fulfillment of obligations to consumers, financial abuses, and violations of regulatory requirements create additional risks for entrepreneurs and jeopardize the stable operation of businesses.
Monopoly and its consequences
DSOs hold a monopoly position in the electricity distribution market, which deprives consumers of choice and creates conditions for abuse. One of the most significant violations is the unlawful change of voltage class, which directly affects the electricity distribution tariff.
Essence of the violation
Since early 2022, DSOs have begun transferring consumers (mostly medium and large businesses) from the 1st voltage class to the 2nd class without making the necessary amendments to contracts. This resulted in a fivefold increase in the distribution tariff. The difference between tariffs for the 1st and 2nd voltage classes can reach 20–30 million UAH. Despite multiple complaints submitted to the Antimonopoly Committee, the National Energy and Utilities Regulatory Commission (NEURC), and the State Energy Supervision Inspectorate, the situation has not changed for three years, and state authorities mostly support the actions of DSOs.
Main violations:
1. Improper fulfillment of obligations to consumers
– Unlawful application of the 2nd voltage class tariff.
– Issuing inflated invoices along with threats of power disconnection.
– Refusal to amend contractual terms according to business needs.
– Ignoring complaints and claims from consumers.
2. Financial abuses
– Unjustified additional charges.
– Demands for extra payments for services that should be included under the existing contract.
– Overstating costs of technical maintenance of electrical networks.
3. Violation of regulatory requirements
– Unilateral tariff changes without proper contract amendments.
– Violating procedures for changing distribution point passports and other documentation.
– Lack of a clear methodology for determining voltage classes for consumers receiving electricity via a main consumer.
Legal consequences for businesses
Financial losses: increased costs, production downtime, equipment damage, revenue reduction.
Administrative risks: potential penalties and disconnection from electricity supply due to unpaid inflated invoices.
What businesses should do
1. Document violations and collect evidence
– Record outages, financial abuses, and breaches of contract terms.
– Keep all documentation proving the lawful application of the 1st voltage class (contract, distribution point passports, technical specifications, etc.).
2. Challenge DSO actions
– File complaints with NEURC, the Antimonopoly Committee, and the State Energy Supervision Inspectorate, following all procedural requirements.
– Send formal requests regarding the legality of the change in voltage class.
3. Judicial protection
– Challenge illegal decisions of DSOs in court.
– Seek professional legal assistance to protect corporate rights.
Our legal team has developed an effective strategy for business protection that allows us to challenge unlawful DSO actions, prevent unjustified changes in voltage class, and ensure recalculation of inflated electricity distribution tariffs.
Our legal solutions have already helped large industrial enterprises minimize electricity supply costs and restore fair cooperation conditions with DSOs.
16.05.2025
