13:06 30.10.2017

Kyivenergo assesses daily loss form supply of heat to budget-funded institutions at UAH 1.2 mln

Kyivenergo assesses daily loss form supply of heat to budget-funded institutions at UAH 1.2 mln

The loss of public joint-stock company Kyivenergo from supply of heat and hot water to budget-sustained institutions is around UAH 1.2 million a day, the company's press service has reported.

"Due to a lack of conformance in the prices [the price of gas sold by Naftogaz Ukrainy for these purposes (UAH 7,907) and the price of gas in the heat tariff for budget-funded institutions (UAH 4,949)] the loss of Kyivenergo in April-October 2017 totaled UAH 74 million. Now Kyivenergy daily sees a loss of UAH 1.2 million in the social sphere [kindergartens and hospitals]," the press service said.

The company said that the Cabinet of Ministers of Ukraine at a Wednesday meeting decided to cut the price of gas sold by Naftogaz Ukrainy for heat and hot water supply to budget-sustained institutions by 22%, from UAH 7,907.20 to UAH 6,177.50 per 1,000 cubic meters (transportation costs and VAT not included). However, these changes would not give quick effect, Kyivenergo believes.

"The settlement of the imbalance between the actual and tariff prices for gas in order to avoid huge losses of the heating industry now depends on the promptness of the Finance Ministry in approving changes to resolution of the Cabinet of Ministers No. 187 [reducing the price by 22%], signing changes by the Prime Minister and their publication. Then the NCER [the National Commission for Energy, Housing and Utilities Services Regulation] is to revise the tariffs for heat production by boilers and thermal power plants, taking into account gas prices," Kyivenergo said.

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