Gov't ceasing gas price regulation for regional heat generators – PM

The government will no longer regulate gas prices for regional heat generating companies, as prices will be dictated by the competitive gas market from May 20, says Prime Minister Denys Shmyhal.

"Starting tomorrow, the government will no longer regulate gas prices for regional heat generators and will not oblige Naftogaz to sell gas to them at a fixed price," Shmyhal told a government meeting on Wednesday, according to an UNIAN correspondent.

According to the prime minister, this is another important step towards creating a full-fledged gas market.

Read alsoGov't plans to continue cooperation with Naftogaz Supervisory Board – PM Shmyhal"Now all heat generators, most of which are owned by local authorities, will conclude contracts with gas supply companies on their own, on the best conditions available on the market," he added.

Special obligations on gas market

NJSC Naftogaz of Ukraine set for heat producers the wholesale gas price for April at UAH 6.52 per cubic meter, which is 4% higher than that for March.

From May 1, 2021, the Regulation on the imposition of special obligations on the natural gas market players was set to be terminated, which ensures that heat generators independently select suppliers.

The Naftogaz Trading gas supplying company has sent offers to large heat energy producers to conclude contracts from May 1, 2021, at a price of UAH 8.33 per cubic meter, which is 6% higher than in April.

On April 30, 2021, the Cabinet extended the special obligations regime on the gas market.