The Cabinet of Ministers proposed to immediately fine telecom companies if an inspection shows that their networks do not work without electricity for three days.

The Cabinet of Ministers proposes to introduce sanctions in case of failure to comply with the order of an authorized official of the regulatory body, if telecom operators do not comply with the standards for energy independence — namely, if they are unable to provide telecom services in conditions of a power outage for three days.

What fines are planned to be introduced:

• one thousand tax-free minimum incomes of citizens (17,000 UAH) — for micro and small business entities,
• two thousand tax-free minimum incomes of citizens (34,000 UAH) — for medium-sized businesses,
• five thousand non-taxable minimum incomes of citizens (85,000 UAH) — for large business entities.

In the event of a repeated violation within a calendar year, a fine of 2,000, 5,000 and 10,000 non-taxable minimum incomes of citizens shall be applied.

Why are fines necessary?

According to the decision of the National Security and Defense Council of Ukraine dated November 26, 2022, which was put into effect by presidential decree, the National Commission for the Protection of Communications is currently verifying whether telecommunications providers ensure the operation of their facilities even in the event of a power outage for at least three days. The list of such facilities is determined by the National Commission for the Protection of Communications.

As stated in the explanatory note, if violations are discovered during unscheduled inspections, representatives of the National Electricity Commission issue mandatory instructions to eliminate them.

However, the law currently does not allow for the immediate imposition of fines or other sanctions for failure to comply with the orders of the National Security Council during a state of war or emergency.

Therefore, the procedure looks like this:

1. During the first inspection, a violation is recorded — a prescription is issued;
   
   
2. a second inspection is carried out — if the violation is not eliminated, an order is issued by the NCEC;
   
   
3. During the third inspection, if non-compliance with the requirements of the NCU is confirmed again, only then can the NCEC impose a sanction.
   
   

Because of this , more than six months pass from the first detection of a violation to the imposition of sanctions.

As a result, the NCEC cannot respond quickly to violations during martial law, and electronic communications providers can effectively avoid liability.