Photo from UNIAN, by Volodymyr Hontar
Ukraine's National Energy and Utilities Regulation Commission (NEURC) says it has approved a draft resolution to lower gas distribution tariffs for 14 regional gas distribution companies.
The NEURC passed the document at a meeting on January 19.
Read alsoWeek's balance: IMF mission resumes work, Cabinet vows gas price reduction, while inflation risesAccording to the draft resolution, the NEURC intends to amend the resolutions dated December 16 and December 30, thus cutting tariffs for the following companies: Hadiachgaz, Zakarpatgaz, Ivano-Frankivskgaz, Korostyshivgaz, Lubnygaz, Melitopolgaz, Mykolaivgaz, Poltavagaz, Ternopilgaz, Tysmenytsiagaz, Umangaz, Kharkivgaz, Chernivtsigaz, and LLC Gazovyk.
The cap tariff rate for gas distribution will be fixed at UAH 1.79 (US$0.06) per cubic meter (excluding VAT).
The draft resolution will be published on the regulator's website for comments and suggestions. After that, it will be finally approved.
Natural gas price: Recent developments
- On January 1, 2021, a new price of natural gas was introduced in Ukraine; it was offered by gas suppliers as part of launching a competitive gas market.
- Gas suppliers' prices for households in Ukraine in January were set between UAH 6.99 (US$0.25) and UAH 10.8 (almost US$0.40) per cubic meter, while the minimum rate was 11% up and the maximum one was 20.5% up on the December quotation.
- On January 1, 2021, new tariffs for natural gas transportation were also introduced in Ukraine.
- The National Energy and Utilities Regulatory Commission of Ukraine increased tariffs for 43 gas distribution companies' services by an average of 1.6 times as of January 2021.
- Since the beginning of January 2021, rallies in protest against the increase in utility rates have taken place in a number of regions across Ukraine.
- Responding to the mass protests, President Volodymyr Zelensky instructed the government to urgently resolve the issue of gas tariffs for the population.
- On January 13, 2021, the Cabinet said it would propose setting a fixed price of natural gas for households at UAH 6.99 per cubic meter.
- On January 18, 2021, the government fixed a price of natural gas at UAH 6.99 per cubic meter for households in Ukraine as of February until the end of the heating season.
- In addition, Ukrainian Prime Minister Denys Shmyhal said that the NEURC should shortly make a decision on setting the ceiling gas distribution tariff at UAH 1.79 per cubic meter.
- On January 19, 2021, the Cabinet published a resolution to introduce the cap price of natural gas for household consumers at UAH 6.99 per cubic meter.