Press Conferences

Energy market regulator completes first inspections of regional gas suppliers, companies preparing objections

KYIV. March 19 (Interfax-Ukraine) – The gas distribution pipeline operators where the National Commission for Energy, Housing and Utilities Services Regulation (NCER) completed inspections regarding bringing the volumes of consumed gas to standard conditions, in particular, Vinnytsiagaz, Volyngaz and Kyivoblgaz, are preparing objections to the respective inspection certificates of the regulator, representatives of regional and city gas supply companies said at a press conference at Interfax-Ukraine on Tuesday.

"The inspection certificate of the NCER was signed with objections, and our objections to all the issue raised by the commission will be submitted within five days before March 21 according to legislation," Technical Director of PJSC Vinnytsiagaz Volodymyr Bilash said.

Commenting on the situation around bringing gas volumes to standard conditions, as well as the reasons why it was necessary to apply this methodology directly when billing consumers, the gas distribution pipeline operators said that the current gas distribution tariffs were approved in 2016 and have not been revised since then. In accordance with this, at present, the price of gas purchased for production and technological losses, provided for in the tariff, is almost 50% lower than the market price – UAH 5,700 for 1,000 cubic meters (excluding VAT).

In turn, Head of the Gas Market Association of Ukraine Denys Senektutov said that the Ministry of Energy and Coal Industry, approving resolution (No. 847) in 2016 on the establishment of volumes of gas purchased for production and technological losses for gas distribution pipeline operators, did not take into account the procedure for bringing gas volumes to standard conditions. In this regard, the statement that gas distribution pipeline operators actually receive double pay from the consumer is not true, Senektutov said.

According to the website of the commission, draft regulations of the regulator on violation of licensing conditions by the regional and city gas supply companies (in particular, failure to comply with the regulator's decisions to ban bringing gas consumption to standard conditions) and on imposing a fine on them will be discussed at a meeting of the commission scheduled for March 22.