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Appeal court obliges NCER to ensure refunding of UAH 590 mln to Kharkivgaz for unviable tariff

KYIV. June 6 (Interfax-Ukraine) – The sixth administrative court of appeals (Kyiv) has upheld a ruling of a lower instance regarding a claim of JSC Kharkivgaz against the National Commission for the Energy, Housing and Utilities Services Regulation (NCER), obliging the regulator to set the economically viable tariff for the company, including the compensation of UAH 589.9 million of losses into it, Kharkivgaz Board Chairman Dmytro Novitsky said at a press conference at Interfax-Ukraine on Wednesday.

This, in particular, concerns compensation for losses incurred by the company as a result of setting a tariff for it, with the volume of natural gas for operation was not taken into account at a sufficient level.

According to a court ruling dated May 15, 2019, the NCER is obliged to include in the tariff compensation for the cost of gas for operational needs for 2014-2015 in the amount of UAH 230.3 million, for 2016-2017 – UAH 124 million, and last year – UAH 235.3 million.

So, according to Kharkivgaz, the price of fuel, taken into account by the national commission in the tariff, is UAH 5,800 for 1,000 cubic meters of gas, while the real average price for 2018 amounted to more than UAH 11,000.

Earlier, the sixth administrative court of appeals issued the similar decision regarding a claim of JSC Dnipropetrovskgaz for compensation of UAH 1.038 billion of losses by the national commission over the unreasonable distribution tariff.

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