10:55 17.04.2013

Ukrainian premier: Gas monopolies have lost all sense of reality

2 min read
Ukrainian premier: Gas monopolies have lost all sense of reality

Ukrainian Prime Minister Mykola Azarov has criticized regional gas supply companies for charging unreasonably high rates given the scope of the services they provide to retail customers.

"Gas monopolies have lost all sense of reality," Azarov said opening a government meeting on Wednesday.

He cited as an example Kyivgaz's rates for connection to the gas network, and the replacement of boilers and other gas appliances.

The prime minister also said that the National Commission for Energy Regulation (NERC) adopted two resolutions on January 31, 2013, which regulate the procedure of connection to the gas network and service fees.

Azarov said that the NERC also adopted standard rates for connection to the gas network for this year.

"The rates vary for various regions and conditions from UAH 6,800 to UAH 10,000. I want to emphasize that this is the ceiling price including the cost of materials and work. From now on, no one can demand that a consumer pay more," the prime minister said.

The premier said that all abuses in this area should be stopped and those responsible for them should be punished.

Azarov also demanded the creation of a hotline to accept complaints from citizens about abuses in the gas sector.

"I believe that we need to go further. We should ban intermediaries, eliminate corruption… introduce a one-stop shop system for the connection [to gas networks] and establish a tight deadline for the consideration of citizens' complaints," Azarov said.

Azarov instructed Deputy Prime Minister Yuri Boiko, Energy and Coal Industry Minister Eduard Stavytsky and other officials together with the National Electricity Regulatory Commission (NERC) to check the economic feasibility of such rates and to settle this issue in general.

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