What is an EIS code and how to get it?

Lecture content:

1. Introduction
2. Historical context
3. Introduction of EIC codes in Ukraine
4. Who assigns EIC codes?
5. Assignment of EIC codes to household and industrial consumers
6. Summaries
7. Active links (NPA, standards, resources)
8. Glossary
9. Questions for self-testing

1. The concept of EIC-code

Introduction into legislation
The concept of EIC-code (Energy Identification Code) was enshrined in Ukrainian legislation with the adoption of the Law of Ukraine “On the Natural Gas Market” (effective from October 1, 2015).

In order to implement this law, a number of by-laws were adopted, including:

• Gas Transportation System Code (GTS)
• Gas Distribution Systems Code (GDM)
• Natural Gas Supply Rules
• Standard Contracts for Transportation and Distribution of Natural Gas
• Standard Contract for the Supply of Natural Gas for Household Consumers

According to the GTS Code:

EIC-code (Energy Identification Code) is a unique energy identification code of a natural gas market entity or commercial metering point, which ensures unification and unambiguous identification of natural gas market participants and metering points.

2. Historical context

Until 2015, the concept of an EIC code did not exist in the Ukrainian gas sector. The supply of natural gas was organized differently:

• There was a procedure for the supply of natural gas to consumers, which was based on the work of the so-called Unified Gas Transportation System (UGTS).
• UGTS included the gas transportation system, gas distribution systems, underground gas storage facilities – all the infrastructure that ensured the delivery of gas to consumers.
• In the legislation of that time, the UGTS was mentioned in the Law of Ukraine “On Oil and Gas”, but as a separate operator in the modern sense, it did not exist.

Who carried out the management?

• First – NAK “Naftogaz of Ukraine”, within the structure of which there was a corresponding department.
• Later – JSC “Ukrtransgaz” after the intervention of the Antimonopoly Committee, which recognized the combination of the functions of supplier and system operator as incorrect.

How did gas transportation work?

• Suppliers submitted a written document — a planned distribution of natural gas.
• It indicated:
  • names of enterprises,
  • addresses,
  • total volumes of gas for household consumers.

Feature: these documents had no EIC codes.
Household consumers were displayed in a generalized figure — without individual identification.

3. Introduction of EIC codes in Ukraine

With the adoption of the Law of Ukraine “On the Natural Gas Market” (2015) and the relevant by-laws, significant changes have occurred in the sector.

Transitional period

• 2015 – January 1, 2016 – the process of mass assignment of EIC codes took place:
  • to natural gas market entities (suppliers, operators, production companies, etc.),
  • to commercial accounting points, where actual gas accounting was carried out.

Purpose of assignment

• Unification of market participants’ identification.
• Transparent accounting of consumption and supplies.
• Automation of data exchange between operators, suppliers and consumers.

Practical result

From January 1 2016:

• all natural gas market participants work through the EIC code system;
• accounting and document flow have become digital and standardized;
• the problem of generalized display of household consumers has been eliminated (now each has an individual code).

Since 2015, the Law “On the Natural Gas Market” and subordinate legislation (GTS Code, GRM Code, Gas Supply Rules, standard contracts) have established the mandatory use of EIC codes.

Definition (from the GTS Code):
An EIC code is an energy identification code of a market entity or commercial metering point, created for unique identification in information systems.

Format: 16-digit unique code.

4. Who assigns EIS codes?

Market entities connected to the gas transportation system (GTS)

• Extracting companies,
• Gas distribution system operators (GDM),
• Gas distribution system operatorsstorage facilities.

They were assigned EIC codes by the GTS operator (JSC “GTS Operator of Ukraine”).

Direct consumers

• These are large industrial enterprises that are connected directly to the GTS.
• They do not interact with gas distribution companies.
• Such consumers received EIC codes also from the GTS operator.

Thus, the gas transmission system operator performed the key function of centrally assigning codes for all participants directly connected to the GTS.

5. Assignment of EIC codes to household and industrial consumers

1. Who assigns?

• Household, industrial and other consumers receive EIC codes from gas distribution system operators (GDM).
• The assignment was carried out quickly and centrally.
• Since January 1, 2016, all market participants have been working exclusively through EIC codes.

2. Format and functions of the EIC code

• This is a unique 16-digit code.
• Used to identify:
  • market entities,
  • points commercial accounting.

• Provides:
  • electronic data exchange between participants,
  • correct consumption accounting.

3. Problems at the beginning

• If the code was specified incorrectly, the consumer “disappeared” from the platform:
  • the GRM operator did not see it,
  • he did not see the supplier either.

• This was the reason for termination of gas supply.
• Later the problem was solved, and the system became stable.

4. How assigned to new consumers?

• Large industrial consumers → code from the GTS Operator upon application.
• New household or commercial consumers connecting to the GRM → code from the GRM operator.
• Examples: private homes, new offices receive an EIC code without problems for concluding a distribution agreement.

5. EIC codes for commercial metering points

• If a consumer has several facilities (for example, an office and a factory):
  • he receives an EIC code as a market entity (X-code),
  • for each connection point, a separate Z-code.

• This allows:
  • to receive gas from different suppliers,
  • to keep more accurate records.

• Large industrial enterprises with facilities in different regions also receive Z-codes.

6. Priority of Z-codes

• If a supplier indicates an EIC code with the Z mark in the system, the GTS operator considers this point as priority.

7. Household consumers and competition between suppliers

• In In 2016–2020, there was a problem: suppliers fought for household consumers, and the lack of an EIC code made identification difficult.
• Only in 2021, after changes by the National Commission for the Regulation of Energy and Utilities of Ukraine, was the situation resolved:
  • EIC codes were centrally assigned,
  • including to companies of the Naftogaz group,
  • the problems of identifying household consumers disappeared completely.

Thus, the EIC code became the only tool for identifying consumers and metering points, without which the natural gas market does not work today.

6. Conclusions

• The EIS code is a “passport” for a market participant or metering point.
• Without a code, it is impossible to conclude a distribution or supply agreement.
• Codes are assigned centrally: through GTS or GRM operators.
• Today, EIS codes are an integral part of the functioning of the natural gas and electricity market.

Active links

• Law of Ukraine “On the Natural Gas Market” (Vedomosti Verkhovna Rada (VVR), 2015, No. 27, p. 234): https://zakon.rada.gov.ua/laws/show/329-19#Text
• Code of the Gas Transportation System (GTS): https://zakon.rada.gov.ua/laws/show/z1378-15#n18
• Code of Gas Distribution Systems (GDS): https://zakon.rada.gov.ua/laws/show/z1379-15#Text
• Rules of natural gas supply: https://zakon.rada.gov.ua/laws/show/z1382-15#Text
• Standard contracts for transportation, distribution and supply of natural gasOn the NEURC website: https://www.nerc.gov.ua/dlya-spozhivachiv/spozhivachu/spozhivachu-prirodnogo-gazu/prava-spozhivachiv
• Information platform of the GTS Operator of Ukraine (checking EIS codes, interaction with suppliers): https://tsoua.com/kliyentam/pereviryty-nayavnist-postachalnyka/