The tariff revenue level of gas distribution companies operating under the Regional Gas Company LLC (RGC) brand reached 83% in 2022, or UAH 22 billion, according to a press release from the company on Wednesday.

"We've managed to maintain a fairly high level of settlements at the level of 83% in the conditions of war. It made it possible to ensure settlements with the main counterparties, make capital investments in the reconstruction and restoration of gas networks, and help strengthen the defense capability of Ukraine," CEO of RGC Oleksiy Tiutiunnyk quoted in the press release.

According to him, gas distribution companies operating under the RGC brand managed to ensure the stability of gas distribution systems in the war zone and quickly restore damaged gas networks after de-occupation.

"Gas distribution companies channeled 83% of the received tariff revenue to pay salaries to employees, pay taxes and settle accounts with the Naftogaz group and GTSOU for process gas," RGC said.

At the same time, gas distribution network operators did not receive UAH 3.8 billion due to hostilities, shutdowns of enterprises, and the departure of citizens abroad.

"Wages were the largest item of expenditure last year. UAH 6.4 billion was allocated for this. Gas distribution network operators retained all jobs since the start of the war and relocated some of the workers from the "combat" regions," the company said in the press release.

Taxes were the second largest item of expenditure. UAH 4.9 billion in taxes was sent to the state and local budgets last year, which is 14% more than in pre-war 2021.

And on the third item is the cost of process gas.

"In total, UAH 3.2 billion was allocated for settlements with the Naftogaz group, Gaz Ukrainy, and GTSOU," the company said.

Another UAH 450 million was spent on resuming gas distribution in de-occupied and war-affected territories.

In addition, in 2022, the RGC actively supported the Armed Forces of Ukraine and provided humanitarian assistance, for which about UAH 181 million was allocated, the RGC added.

"At the same time, gas distribution companies did not receive UAH 3.8 billion, which NEURC provided for in the tariffs. The shortfall in tariff revenue is due to military operations, the forced migration of Ukrainians abroad, and the shutdown of industrial enterprises," the company said.

As predicted by the RGC, in 2023, the level of settlements due to the continuation of the war will fall, which is also affected by the major destruction of houses, enterprises, and gas distribution network infrastructure.

As reported, 20 gas distribution companies operate under the RGC brand, managed by Dmytro Firtash's Group DF, servicing more than 250,000 km of gas pipelines. RGC also specializes in operational, manufacturing, engineering, and R&D solutions for gas distribution.