18:04 23.03.2021

Naftogaz, Firtash's Ye Energiya agree to supply gas under one-year contract

2 min read
Naftogaz, Firtash's Ye Energiya agree to supply gas under one-year contract

NJSC Naftogaz Ukrainy and Ye Energiya LLC of Dmytro Firtash have signed an agreement on the purchase and sale of natural gas, which will allow market participants to offer the population the resource at a fixed price within a year, the companies said in their press releases on Monday.

Naftogaz notes that, on behalf of the government, the group has completed the development of a market solution that can protect households from seasonal gas price surges during the next heating season, as well as from the price increases that are observed due to the global economic recovery.

"Such a solution is the introduction of an annual tariff, which determines a single price for gas throughout the year. This price works like insurance for a car. It avoids problems (in the case of gas prices - peak price jumps in winter), but, unlike insurance, it does not require prepayment. The provision of such 'insurance' in Ukraine became possible thanks to Naftogaz, its access to European exchanges and the free movement of gas between the European market and Ukraine," the company noted.

According to the NJSC, all residential consumers will be able to take advantage of such a tariff, since the group will provide equal opportunities for all gas supply companies so that they can develop their own annual tariff plan. Naftogaz is ready to provide an opportunity to buy gas to suppliers operating in the retail market for the population.

Naftogaz, in particular, has already reached an agreement with the largest supplier - Ye Energiya, which is a wholesale supplier, including for a number of regional gas distribution companies operating under "Your gas distribution company" brand.

In turn, Ye Energiya announced that an agreement has already been signed with Naftogaz on the purchase of natural gas at market prices, which will enable the company to provide suppliers with a resource for annual contracts for the supply of gas to the population and commercial consumers.

"The signing of such a contract will allow suppliers to come up with an annual offer for the population and guarantee stable gas supplies throughout the year," the company said.

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