16:14 02.03.2020

Anti-trust agency opens case against Naftogaz for setting prices for households too high

1 min read
Anti-trust agency opens case against Naftogaz for setting prices for households too high

 The Antimonopoly Committee of Ukraine (AMC) has opened a case about the possible abuse of monopoly position by Naftogaz Ukrainy when setting natural gas prices for the population from November 1, 2018, the committee's website reports.

The AMC reported that Naftogaz has special obligations to sell gas to domestic consumers (the public). At the same time, the company sets prices in this market segment based on the price of gas for industry, which it offers.

According to information available to the committee, Naftogaz set prices for industrial consumers higher than those established in a competitive environment, in particular, according to the results of electronic exchange trading on the Ukrainian Energy Exchange and on European hubs with the condition of gas delivery to the Ukrainian border (NCG).

"This may indicate the establishment by Naftogaz Ukrainy from November 1, 2018 of prices for natural gas for the population at a level that could not be established if there was significant competition in the natural gas markets," the statement said.

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