16:27 20.01.2021

Decision on ceiling gas price for public will save consumers UAH 4-5 bln - Naftogaz

2 min read
Decision on ceiling gas price for public will save consumers UAH 4-5 bln - Naftogaz

The decision made by the Cabinet of Ministers of Ukraine to introduce the maximum gas price for the population at UAH 6.99/cubic meter in February-March 2021 will save household consumers UAH 4-5 billion, Naftogaz Ukrainy predicts.

According to the group's press release, it, represented by the wholesale gas supplier Naftogaz Trading LLC, is ready to provide necessary resources to gas sales companies for the needs of the population with two payment options.

The first option provides for gas supplies at a discount to the market price, provided that the gas sales counterparty verifies the customer base. The gas supply company must prove that there are household consumers among its customers, and at the end of each month inform Naftogaz about the volumes delivered directly to the needs of the population.

The volumes of actual gas consumption by the population will be checked. All consumer data will be collected in accordance with the requirements of the current legislation, and will allow creating a unified state database. In the future, this database will allow the government to identify categories of vulnerable consumers and provide targeted cash assistance, rather than introducing additional market regulation.

The second option is if the gas supply company does not want to confirm supplies to the population, it will be able to purchase gas at the market price from Naftogaz Trading with a bank guarantee of payment or prepayment. At the same time, the average gas price in January ranges from UAH 6,831 to UAH 7,417 per 1,000 cubic meters (excluding VAT). Also, Naftogaz plans to use accounts with contractual write-off as a guarantee of the targeted use of funds.

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