18:18 09.08.2019

Naftogaz contesting in court new mechanism of setting gas prices for public

2 min read
Naftogaz contesting in court new mechanism of setting gas prices for public

Naftogaz Ukrainy has filed a lawsuit in the Kyiv District Administrative Court asking it to declare illegal and invalid the government resolution adopted in June 2019, which establishes a new procedure for setting prices of natural gas for the population, the court's press service has said.

The matter concerns cabinet resolution No. 485 of July 5, according to which Naftogaz, when determining the price of gas for the population, takes as its basis the smallest of the four figures indicated in the document. Among them are the price of gas for commercial consumers last month, the average customs value of imported gas for the previous month, the average weighted price on the Ukrainian Energy Exchange, as well as the cost of gas under public service obligations (PSO), determined by resolution No. 867 of October 19, 2018.

Currently, the court is deciding whether to open proceedings on this lawsuit.

As reported, the Cabinet of Ministers by resolution No. 867 of October 19, 2018 extended the term of Naftogaz' public service obligations to sell natural gas for the needs of the population, thermal energy producers and religious organizations. The situation in the European market, which has been established since spring 2019, led to a decrease in the market price of gas below the regulatory level set by the government for the population.

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