12:11 19.01.2021

PM confident in Naftogaz's readiness to receive all household consumers of country as supplier of last resort

2 min read
PM confident in Naftogaz's readiness to receive all household consumers of country as supplier of last resort

Prime Minister of Ukraine Denys Shmyhal is convinced that Naftogaz Ukrainy is ready to supply natural gas to all household consumers of the country, as a supplier of last resort (SOLR), in case other sales companies refuse to sell gas at UAH 6.99 per cubic meter.

Naftogaz is ready for such situations. That is, if there is a refusal to supply someone at a given price, then Naftogaz, as a supplier of last resort will supply gas to people at UAH 6.99 per cubic meter," he said in an exclusive interview with Interfax-Ukraine.

The prime minister reiterated that Ukraine does not refuse to liberalize the natural gas market for the households, but this market segment only started working in August last year, and is not yet fully balanced.

"In particular, there are large companies that have a monopoly position in certain regions. These are regional gas companies, which own 88% of the gas supply market for household consumers. Therefore, a price imbalance took place when state-owned NJSC Naftogaz sells gas in one of the regions for household consumers in January at UAH 7.22, and there are areas where the price is more than UAH 10," he said.

Shmyhal recalled that due to severe frosts that came to Europe and Ukraine, the price of gas on the exchanges has increased sharply, and not all consumers in the country are ready to purchase gas at such a price.

"Therefore, even in market mechanisms, government intervention is assumed in order to protect the household consumer. Of course, there may be a product of a monetary subsidy to protect vulnerable consumers, but this product is long, it takes time, registration, determining the correct parameters of recipients," the prime minister said.

 

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