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Head of Ukraine's National Energy and Utilities Regulation Commission (NEURC) Dmitry Vovk pledges there will be no changes in the model of payment for natural gas by Ukrainian households before a new heating season starts in 2017-2018, and a commission decision to introduce a delivery charge (the so-called customer charge) will be postponed for at least three months.
"It [suspension of the decision] will last at least three months. On Monday [April 10], it will be finalized, and there will no change or additional costs for customers before the heating season," he said.
Yet, Vovk said, this decision makes the gas tariff more transparent.
"In our case, a consumer will have a clear understanding of what he or she is paying for: the customer charge and the gas charge," Vovk added.
Read alsoUkraine takes nearly 4 bcm of gas from underground storage in 2017As UNIAN reported earlier, NEURC on March 28 adopted a new methodology to calculate natural gas rates for consumers, including for households: starting from April 1, the gas tariff was expected to include two components: the gas charge (about UAH 6 per cubic meter) and the delivery charge, i.e. costs related to transportation of gas via mains and regional distribution networks (the so-called customer charge). The latter will be calculated based on the maximum capacity of a customer's gas meter.
Experts calculate that the costs for those consumers who have only a gas stove (without a gas boiler) and a G 1.6 gas meter will grow by 1-4 times on the average, while the charge for owners of gas stoves without a meter will soar by 5-8 times on the average. The new methodology will also allow regional gas distributors to additionally earn about UAH 7.7 billion, or US$283.6 million, per year.
Read alsoFT: Ukrainians will finally feel benefit of reforms this year, says PMOn April 3, Prime Minister Volodymyr Groysman announced plans to officially ask NEURC to review the introduction of the delivery charge for households. In turn, NEURC invited the Cabinet to take measures to prevent the growth of the final gas rates for the population.
On the same day, NEURC announced it would initiate a reduction in central heating tariffs for residents of apartment buildings with gas stoves in order to balance out growing gas rates after the introduction of the delivery charge.
On April 4, Ukrainian President Petro Poroshenko's administration published a statement saying that the NEURC decision should be suspended. The president also appealed to NEURC and the Cabinet to come to a coordinated decision, which would prevent growing gas rates. Following that, NEURC announced this decision would be suspended on April 10.