Business asks for a balanced draft law on the National Commission on Transport Regulation

02/ 06/ 2020

On May 7, the Ministry of Infrastructure of Ukraine published a new version of the draft law on the National Commission for State Regulation in the Field of Transport. Although the European Business Association strongly supports the establishment of an independent regulator in the market of transport services, the EBA experts are not ready to support the current version of the document prepared by the Ministry.

The business has already submitted its proposals regarding the concept of such a body, but, unfortunately, they are not reflected in the current version of the document. We continue to insist on the independent status of the NCTR as a body that should impartially review the tariff policy of natural monopolies.

Therefore, the draft law should provide respective guarantees of independence regarding the special status of the body, the procedure for selecting, appointing, and dismissing the Chairman and members of the NCTR, the procedure for financing, etc. According to experts, the proposed model of financing calls into question the independence of the NCTR and therefore should be revised.

It is important to clearly define the competences of the NCTR – the authorities of the new body should not extend to the regulation of entities in related markets of the transport field. Moreover, the new version of the draft law does not properly establish the NCTR ‘s authority to regulate tariffs for services paid as part of port charges, as well as to control the targeted use of funds from port charges.

The experts of the Logistics Committee have sent their detailed proposals and comments to the Ministry and hope to finalize the document with the involvement of the business community. Otherwise, the adoption of the draft law in its current version will not lead to the establishment of a truly independent regulator in the industry.

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